Which of the Following Is True About a Differentiated-Product Bertrand

question 15

Multiple Choice

Which of the following is true about a differentiated-product Bertrand duopoly?

• A) Firm 1 and firm 2's reaction functions are downward sloping.
• B) Firm 1 and firm 2's reaction functions are upward sloping.
• C) Firm 1's reaction function is downward sloping but firm 2's reaction function is upward sloping.
• D) In a differentiated-product Bertrand duopoly neither firm has a reaction function.

---

Definitions:

Progesterone

A hormone produced in the ovaries, placenta (during pregnancy), and adrenal glands, important for regulating the menstrual cycle and maintaining the early stages of pregnancy.

Estrone

A weak estrogen hormone produced by the ovaries and important for female reproductive health.

Adrenaline

A hormone also known as epinephrine that increases heart rate, muscle strength, blood pressure, and sugar metabolism, released in response to stress.

Hypergonadism

A condition characterized by excessive activity of the gonads, leading to an overproduction of hormones and, in some cases, early onset of puberty or fertility issues.