Figure 5
The Profit Possibility Frontier

Following is a description of Figure 5:

• Along the left of the x-axis are the words "Efficient point, Bertrand"
• One set of perpendicular dotted lines labeled "Cournot" intersect the x-axis at 57.60 and the y-axis at 57.60.
• One set of perpendicular dotted lines labeled "Stackelberg" intersect the x-axis at 64.80 and the y-axis at 32.40.
• A diagonal line just outside the top right corners of the Cournot and Stackelberg areas ( drawn from near the top of the y-axis to the right of the x-axis) is labeled "Profit possibility frontier."

Return to Figure 5