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.

---

Definitions:

Toxins

Poisonous substances produced by living organisms, often causing disease when entered into the body at sufficient quantities.

Earthworms

Invertebrate animals belonging to the class Oligochaeta, known for their role in aerating the soil and enhancing soil fertility through their digestion process.

Marine Annelids

Worm-like organisms that live in marine environments, part of the phylum Annelida, known for their segmented bodies.

Parapodia

Parapodia are paired, lateral extensions on each segment of some annelids, such as polychaetes, used for locomotion and sometimes respiration.