In a Bertrand Oligopoly

question 25

Multiple Choice

In a Bertrand oligopoly,

• A)each firm chooses simultaneously and non-cooperatively how much to produce to maximize its own profit.
• B)each firm chooses simultaneously and non-cooperatively its own product's price to maximize its own profit.
• C)one firm acts as a quantity leader, choosing its quantity first, while all other firms act as followers, choosing their quantities second and in reaction to the leader.
• D)each firm makes its profit-maximizing decision while considering the entire market demand, the same as a monopolist.

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