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.

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Definitions:

Conversion

The process of changing the chemical structure of a substance to another form, often implemented in synthesis and reaction mechanisms.

Acid

A substance that donates hydrogen ions or accepts an electron pair in reactions.

Alcohol

Organic compounds characterized by the presence of one or more hydroxyl (-OH) groups attached to a carbon atom.

Alkyne

A hydrocarbon that contains at least one carbon-carbon triple bond, characterized by the formula CnH2n-2.