Tom and Jack are the only two local gas stations.Although they have different constant marginal costs,they both survive continued competition.Tom and Jack do NOT constitute a:
A) Sweezy oligopoly.
B) Cournot oligopoly.
C) Stackelberg oligopoly.
D) Bertrand oligopoly.

Question

Quizplus · Accepted Answer

Bertrand oligopoly assumes that firms compete by setting prices rather than quantities produced, and in this scenario, Tom and Jack are competing by offering different prices for their gas rather than quantities produced. Therefore, they can be classified as a Bertrand oligopoly. They do not fit the description of the other types of oligopolies mentioned.

Tom and Jack Are the Only Two Local Gas Stations