In a Bertrand Competition, with Differentiated Goods in a Market

question 111

Multiple Choice

In a Bertrand competition, with differentiated goods in a market structure of two firms, firm A's reaction function gives:

• A) optimal quantity for A as a function of quantity for B.
• B) optimal price for A as a function of price for B.
• C) optimal price for A as a function of quantity for A and quantity for B.
• D) optimal quantity for A as a function of price for B.

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