"An oligopoly is an oligopoly.Firms behave the same no matter what type of oligopoly it is." This statement is true of:
A) Bertrand and Cournot oligopolies.
B) Cournot and Stackelberg oligopolies.
C) Bertrand and Stackelberg oligopolies.
D) None of the preceding answers is correct.

Question

Quizplus · Accepted Answer

The statement is incorrect because firms do not behave the same in all types of oligopolies. In Bertrand oligopolies, firms compete on price, in Cournot oligopolies, they compete on quantities, and in Stackelberg oligopolies, there is a leader-follower dynamic in competition.

"An Oligopoly Is an Oligopoly