Bertrand Duopolists, Firm 1 and Firm 2, Face Inverse Market $P = 50 - Q$

question 52

Multiple Choice

Bertrand duopolists, Firm 1 and Firm 2, face inverse market demand $P = 50 - Q$ . Both have marginal cost, $M C = \$ 20$ . The equilibrium price in the market will be:

• A) \(\$ 10\)
• B) \(\$ 20\)
• C) \(\$ 30\)
• D) \(\$ 40\)

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Definitions:

Liquidity

A measure of how easily assets can be converted into cash without affecting their market price.

Accounts Receivable

Denotes the funds that customers owe a business for received goods or services that remain unpaid.

Notes Receivable

Claims held by a creditor that are supported by promissory notes, representing a right to receive payments from debtors.

Correcting Entry

An entry made in the accounting records to amend a previously made mistake or incorrect transaction.