Which Assumptions of the Bertrand Model Be Altered to Avoid

question 4

Multiple Choice

Which assumptions of the Bertrand model be altered to avoid the Bertrand Paradox (that an outcome resembling perfect competition may arise with even as few as two firms) ?

• A) assuming firms have limited capacities.
• B) assuming firms produce differentiated rather than homogeneous products.
• C) assuming firms play repeatedly and thus may collude.
• D) all of the above.

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Definitions:

Three Levels

The concept of dividing an organization, strategy, or process into three distinct layers or stages for analysis, decision-making, or implementation purposes.

Organizational Change

The process through which a company or organization undergoes a transformation in its culture, structure, processes, or strategies.

Group-Level

Pertains to analysis, decision-making, or dynamics that occur within a cohesive group of individuals within an organization.

Negative Feedback

A process in which the system responds in such a way as to reverse the direction of change. In a workplace context, it typically refers to constructive criticism aimed at improving performance.