Two Firms Are Enough to Replicate Perfectly Competitive Outcomes in a Bertrand

question 68

True/False

Two firms are enough to replicate perfectly competitive outcomes in a Bertrand market, whereas a Cournot market only approaches perfectly competitive outcomes when the number of competitors becomes large.

---

Definitions:

Coalition Building

The process of forming alliances or partnerships among groups with shared interests for a common purpose.

Drafts Agreement

A preliminary version of a contract or agreement that is subject to negotiations or revisions.

Omit Others

To leave out or exclude additional individuals or items from consideration or action.

Exerting

Applying effort, influence, or pressure to achieve a particular outcome.