In Which Oligopoly Model(s) Do Firms Earn Zero Profit

question 26

Multiple Choice

In which oligopoly model(s) do firms earn zero profit?

• A) Cournot
• B) Bertrand
• C) Stackelberg
• D) Oligopoly firms always earn positive economic profits.

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Definitions:

Straight Bankruptcy

A term often used to refer to Chapter 7 bankruptcy, which involves the liquidation of a debtor's assets to repay creditors.

Chapter 7

A provision of the United States Bankruptcy Code dealing with liquidation, where a debtor's assets are sold to pay off creditors.

Liquidation

The process of closing a business and distributing its assets to claimants, often during bankruptcy.

Bankruptcy Code

The body of federal law governing the process of bankruptcy in the United States, allowing individuals or entities to eliminate or reorganize debt.