Which of the Following Are Model Assumptions of Bertrand Competition

question 142

Multiple Choice

Which of the following are model assumptions of Bertrand competition with identical goods?
I. The firms compete by choosing the quantity of output produced.
II. The firms agree to coordinate their output and pricing decisions to act like a monopolist.
III. The firms compete by choosing the price of their product.

• A) I
• B) II
• C) III
• D) I, II, and III

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Definitions:

Stono Rebellion

A significant slave uprising that commenced on September 9, 1739, in South Carolina, leading to a severe tightening of the slave codes and the temporal halting of slave importation from Africa.

West Africans

People originating from the western region of the African continent, which includes countries like Nigeria, Ghana, Senegal, and Mali, known for rich cultural heritage and historical civilizations.

Rice

A staple food grain consumed worldwide, regarded as an essential part of many cultures' diets and a primary agricultural product in numerous countries.

South Carolina

A U.S. state known for its role in the American Civil War, significant historical landmarks, and as a center of African American culture and history.