In a Bertrand Model,if One Firm Has a Dominant Strategy,its

question 12

Multiple Choice

In a Bertrand model,if one firm has a dominant strategy,its best-response function

• A)does not exist.
• B)is identical to its rival.
• C)is a constant.
• D)is to respond to its rival's price increase with a price decrease.

---

Definitions:

All-Or-None

The All-Or-None principle is a rule stating that the strength of a response of a nerve or muscle fiber is not dependent on the strength of the stimulus; if the stimulus exceeds the threshold, a complete response is generated.

Non-Decremental Fashion

Describes a process that does not decrease or diminish in size, importance, or intensity over time or distance.

Strength of Stimulus

A parameter that influences the magnitude of a physiological response, where greater stimuli typically induce stronger responses.

Glial Cells

In the central and peripheral nervous system, these are the non-neuronal cells that provide support and protection for nerve cells.