Which oligopoly model(s) have the same results as the competitive model?
A) Cournot
B) Bertrand
C) Stackelberg
D) Both Cournot and Stackelberg

Question

Quizplus · Accepted Answer

The Bertrand model has the same results as the competitive model, as both assume products are perfect substitutes and firms are price takers. In Bertrand, firms compete on price, leading to a situation where price is equal to marginal cost and profits are zero. Cournot and Stackelberg models, on the other hand, result in firms having some market power and earning positive profits.

Which Oligopoly Model(s) Have the Same Results as the Competitive