Which of the following is true?
A) In Bertrand oligopoly each firm reacts optimally to price changes.
B) In Cournot oligopoly firms engage in quantity competition.
C) In Sweezy oligopoly a change in marginal cost may not have an effect on output or price.
D) All of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

In Bertrand oligopoly, firms compete on price and react optimally to price changes. In Cournot oligopoly, firms compete on quantity and react optimally to changes in output levels. In Sweezy oligopoly, firms engage in non-price competition and a change in marginal cost may not have an effect on output or price. Therefore, all the statements are correct.

Which of the Following Is True