Which of the following is/are assumptions of Cournot’s oligopoly model ?
i. Firms sell differentiated products
ii. Their marginal costs are zero
iii. Market demand curve is unknown to both sellers and is non - linear
iv. Each firm believes that it’s rival will hold output constant regardless of what level of output it produces
1
i and iii
2
only ii
3
only iii
4
ii and iv