In which oligopoly model(s) do firms earn zero profit?

Question

Quizplus · Accepted Answer

In the Bertrand model, firms compete on price rather than quantity, which leads to a situation where they will undercut each other's prices until economic profits are reduced to zero. In contrast, the Cournot and Stackelberg models allow for some level of positive economic profits for firms. The provided option D is incorrect as oligopoly firms may earn zero or positive profits depending on the market conditions and factors influencing demand and supply.

In Which Oligopoly Model(s) Do Firms Earn Zero Profit