Suppose the Market Demand Curve for a Bertrand Duopoly Is

question 40

Multiple Choice

Suppose the market demand curve for a Bertrand duopoly is downward sloping. What happens to the Nash equilibrium price and market quantity if the constant marginal cost declines?

• A) Price and quantity decline.
• B) Price increases and quantity declines.
• C) Price decreases and quantity increases.
• D) Price and quantity increase.

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