The Market Demand in a Bertrand Duopoly Is P =

question 24

Multiple Choice

The market demand in a Bertrand duopoly is P = 10 - 3Q, and the marginal costs are $1.Fixed costs are zero for both firms.Which of the following statement(s) is/are true?

• A)P = $1.
• B)profits of Firm One = profits of Firm Two.
• C)producer's surplus of Firm One = producer's surplus of Firm Two.
• D)all of the statements associated with this question are correct.

---

Definitions:

Fixed Interval Schedule

A reinforcement schedule in operant conditioning where the first response is rewarded only after a specified amount of time has elapsed.

Unpleasant Consequences

Negative outcomes or penalties that follow undesirable behaviors, aimed at reducing those behaviors.

Negative Reinforcement

A reinforcement contingency through which behaviors are followed by the removal of previously experienced negative consequences, resulting in the likelihood that the behavior will occur again in the same or similar situations.

Positive Reinforcement

A reinforcement contingency through which behaviors followed by positive consequences, are more likely to occur again in the same or similar situations.