The article explores how firms in a duopoly can strategically choose prices and production levels to maximize profits. Two models are developed where firms decide on serving or production capacity. The research shows that rationing can be a strategic choice made by the leader firm, affecting equilibrium outcomes. Rationing is not always present, but when it is, it is a strategic variable that influences prices and profits. This challenges the idea of fixed price equilibriums and highlights the importance of flexible pricing strategies in duopoly settings.