Problem
1. Why is the Cournot equilibrium price less than the monopoly price? Why is the Cournot equilibrium price greater than the perfectly competitive price?
2. Explain the difference between the Bertrand model of oligopoly and the Cournot model of oligopoly. In a homogeneous products oligopoly, what predictions do these models make about the equilibrium price relative to marginal cost?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.