Firm a Has a Strictly Higher Marginal Cost Than FirmB

question 6

Multiple Choice

Firm A has a strictly higher marginal cost than firmB.They compete in a homogeneous product Bertrand duopoly.Which of the following results will NOT occur?

• A) Q_A < Q_B
• B) Profit_A = 0 < Profit_B
• C) Revenue of firm A < Revenue of firm B
• D) Price_A < Price_B

---

Definitions:

Longitudinal

Pertaining to research or studies that follow subjects over a period of time to observe changes or developments.

Same Group

A collection of individuals or items that are considered together because of shared characteristics or a common purpose.

Older

A comparative term used to describe someone or something of greater age or the process of aging or becoming older.

Cohort Effect

The influence that shared characteristics or experiences of a group have on the results of a study, due to members of the group having been born at or around the same time.