Which One of the Following Statements Is a Common Criticism

question 36

Multiple Choice

Which one of the following statements is a common criticism of the original Bertrand duopoly model?

• A) Firms never choose optimal prices as strategic variables.
• B) Firms would more naturally choose quantities if goods are homogenous.
• C) The assumption that market share is split evenly between the firms is unrealistic.
• D) A and B are correct.
• E) B and C are correct.

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