Question: indicate whether each statement below is true or false and...
Indicate whether each statement below is true or false, and justify your answer.
(a) The Cournot oligopoly model is not useful for analysing competition among firms because (i) firms normally choose prices, not quantities, and (ii) firms normally do not make their decisions simultaneously.
(b) Entry deterrence and entry accommodation call for the same strategy when the firms’ actions (e.g. setting price or setting quantity) are strategic substitutes and for opposing strategies when the firms’ actions are strategic complements.
(c) Price competition is less intense in more concentrated industries.