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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Definitions:

Subjectivist Fallacies

Errors in reasoning that occur when subjective opinions or personal preferences are presented as objective facts.

Fallacy

A fallacy is a misleading or unsound argument that appears logical at first glance but does not hold up under scrutiny, often due to flawed reasoning or misleading premises.

Evidence

Information, data, or facts presented in support of an assertion, claim, or argument.

Multiple Fallacies

The presence of several logical errors or misleading arguments within a single reasoning process or argument.