In the Bertrand Model

question 46

Multiple Choice

In the Bertrand model,

• A)each firm takes the quantities produced by its rivals as given.
• B)each firm takes the prices charged by its rivals as given.
• C)one firm plays a leadership role and its rivals merely follow.
• D)prices are higher and quantities are slightly less than we would see if the firms colluded to achieve the monopoly outcome.

---

Definitions:

Flexible Spending Accounts

Tax-advantaged accounts that allow employees to save pre-tax dollars for eligible health care and dependent care expenses.

Defined-Benefit Plans

A type of pension plan where an employer promises a specified pension payment upon retirement, which is determined based on the employee’s earnings history, tenure of service, and age.

Workers' Compensation Insurance

Insurance that provides financial benefits and medical care to employees who are injured or become ill as a direct result of their job.

Experience Rating

The number of employees a company has laid off in the past and the cost of providing them with unemployment benefits.