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Suppose there are two firms in a market: firm A and firm B. Further, assume that they produce a homogenous product at a constant marginal cost of $10. In the Bertrand model solution, firm A will charge a price:
Control Group
In an experiment, the group that does not receive the treatment or intervention being tested, serving as a benchmark for comparison.
Expectancy Effects
Phenomena in which the outcome of a study is influenced by the participants' or experimenters' expectations.
Demand Characteristics
Cues that inform the subject how he or she is expected to behave.
Unobtrusive Measures
Research methods that do not require direct interaction with participants, minimizing the potential for the researcher's presence to influence the results.
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