If Happy Cleaners and Sparkle Cleaners are in a Cournot oligopoly and Happy Cleaners has a higher cost of production than Sparkle Cleaners, in equilibrium, Happy Cleaners will produce than Sparkle Cleaners and earn an economic profit that is Sparkle Cleaners.

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In a Cournot oligopoly, firms decide on the quantity to produce to maximize their profits, taking into account the production decisions of their competitors. If Happy Cleaners has a higher cost of production than Sparkle Cleaners, it will produce less because its marginal cost of production is higher at any given quantity, making it less profitable to produce more. Consequently, Happy Cleaners will also earn less in economic profit than Sparkle Cleaners because its higher costs lead to lower profit margins on the goods it does sell.

If Happy Cleaners and Sparkle Cleaners Are in a Cournot