Two Firms Are in Bertrand Competition with Differentiated Goods

question 11

Multiple Choice

Two firms are in Bertrand competition with differentiated goods. Firm A faces the demand curve q_A = 40 - P_A + 0.50P_B. What is Firm A's total revenue?

• A) TR_A = 40P_A - + 0.50P_AP_B
• B) TR_A = (40 - P_A + 0.50P_A)P_B
• C) TR_A = (40 - P_A + 0.50P_A)q_A.
• D) TR_A = (40 - P_B + 0.50P_B)P_A

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Definitions:

Conflict

A struggle or clash between opposing forces or interests, which can be interpersonal, intra-personal, or international.

Direct Coping

Involves confronting a stressful situation head-on and attempting to address or resolve the problems causing stress.

Withdrawal

The process of reducing or stopping the intake of a substance to which one has become addicted, often accompanied by unpleasant symptoms.

Hassles

Minor irritations and annoyances that are part of everyday life and can accumulate to impact one's mental health and well-being.