Which of the duopoly models has the lowest overall combined profit level?
A)The Cournot model
B)The Bertrand model
C)The Stackelberg Leader-Follower model
D)The shared monopoly model

Question

Quizplus · Accepted Answer

In the Bertrand model, the firms compete on price and try to undercut each other. This leads to a price war and lower profits for both firms. Therefore, the Bertrand model has the lowest overall combined profit level.

Which of the Duopoly Models Has the Lowest Overall Combined