Firms' total output is higher in the Cournot oligopoly model than in the Bertrand oligopoly model.

Question

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In the Cournot oligopoly model, firms decide on quantities to produce independently and simultaneously, leading to a higher combined output than in a monopoly but typically lower than in perfect competition. In contrast, the Bertrand oligopoly model assumes firms compete by setting prices, often leading to more competitive pricing closer to marginal cost and potentially higher output compared to Cournot, as firms undercut each other's prices to capture market share.

Firms' Total Output Is Higher in the Cournot Oligopoly Model