The Nash Equilibrium in Bertrand Competition with Identical Goods

question 54

Multiple Choice

The Nash equilibrium in Bertrand competition with identical goods:

• A) occurs when each firm produces where marginal revenue equals marginal cost.
• B) occurs when each firm sets price equal to marginal cost.
• C) occurs when each firm sets price equal to average total cost.
• D) does not exist.

---

Definitions:

Xenophobia

An irrational fear or hatred of strangers or foreigners, often manifesting through discrimination or hostility.

Negative Way

A term that refers to a method or approach characterized by negation or refusal, often aimed at reducing or eliminating something undesirable.

Acculturation

Adapting to the language, values, beliefs, roles, and other characteristics of the host culture.

Host Culture

The culture of a country or community where an individual is living temporarily or permanently as a visitor or newcomer, often contrasted with the individual's native or home culture.