The Difference Between Bertrand and Cournot Models Is That

question 47

Multiple Choice

The difference between Bertrand and Cournot models is that:

• A)quantity per firm increases and price decreases with the number of firms.
• B)they apply to all possible market structures.
• C)the monopoly and perfect competition models are special cases.
• D)quantity per firm and price are constant for all markets with two or more firms.

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Definitions:

Solve

The process of finding an answer or solution, especially in mathematics by determining the value of variables.

Possible

That which can be done or achieved, within the realm of reality or probability.

Linear Equation

An equation between two variables that produces a straight line when plotted on a graph.

Linear Equation

An equation that makes a straight line when plotted on a graph, typically of the form \(ax + by = c\).