The Bertrand Model Is a More Plausible Model of Firm

question 92

Multiple Choice

The Bertrand model is a more plausible model of firm behavior than the Cournot model

• A) when firms set the quantity to be sold.
• B) when firms sell a differentiated product.
• C) because firms that sell a non-differentiated product typically act as price takers.
• D) because the Bertrand model predicts that firms will price at marginal cost.