Which firm would you expect to make the lowest profits,other things equal?
A) Bertrand oligopolist
B) Cournot oligopolist
C) Sweezy oligopolist
D) Stackelberg leader

Question

Quizplus · Accepted Answer

In a Bertrand oligopoly, firms compete on price, leading to prices that can approach marginal cost levels, thus potentially resulting in lower profits compared to Cournot (quantity competition), Sweezy (kinked demand curve with price rigidity), or Stackelberg (leader-follower model with strategic advantage for the leader) oligopolies.

Which Firm Would You Expect to Make the Lowest Profits,other