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

question 54

Multiple Choice

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

• A) Firm 1 and firm 2's prices will exceed marginal cost.
• B) Firm 1 and firm 2's prices will equal marginal cost.
• C) Firm 1's price will always be above marginal cost, while firm 2's price will be equal to marginal cost.
• D) Firms in a differentiated-product Bertrand duopoly cannot earn positive economic profits in the long run.

Understand the core principles of Alderfer's ERG theory, including the frustration-regression hypothesis.

Comprehend the fundamentals and implications of self-determination theory, including the significance of autonomy, competence, and relatedness needs.

Grasp the key elements and predictions of McClelland's theory of needs, focusing on achievement, affiliation, and power.

Differentiate between various motivational theories and their approach to explaining human motivation.

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Definitions:

Zero Sum Game

A situation in-game theory where one participant's gain or loss is exactly balanced by the losses or gains of the other participants.

Utility

The measure of satisfaction or value that an individual derives from consuming goods and services.

Risk-neutral

A characteristic of individuals or entities who are indifferent to risk when making investment decisions, focusing solely on the expected returns.

Risk-loving

A characteristic of an individual or entity that prefers or is willing to take actions that have a high level of uncertainty with the potential for significant returns.