All else equal, two firms in a Chamberlin oligopoly will charge a ________price than two firms in a Cournot oligopoly and earn ________economic profit.

Question

Quizplus · Accepted Answer

In a Chamberlin oligopoly, firms differentiate their products, leading to less price competition and higher prices compared to a Cournot oligopoly where firms compete on quantities. This differentiation allows firms to earn more economic profit.

All Else Equal, Two Firms in a Chamberlin Oligopoly Will