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.

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Definitions:

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain; part of the central nervous system.

Foramen Magnum

A large opening at the base of the skull through which the brain connects to the spinal cord.

Medulla Oblongata

The lower portion of the brainstem controlling vital functions such as heartbeat and breathing.

Spinal Cord

The cylindrical bundle of nerve fibers and associated tissue that is connected to the brain and lies within the vertebral canal.