"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 answers is correct.

Question

Quizplus · Accepted Answer

In reality, firms behave differently in different types of oligopolies. In Bertrand oligopolies, firms compete on price, while in Cournot oligopolies, they compete on quantity. Stackelberg oligopolies involve a leader-follower dynamic, which is different from both Bertrand and Cournot models.

"An Oligopoly Is an Oligopoly