Firm a Has a Higher Marginal Cost Than Firm B

question 75

Multiple Choice

Firm A has a higher marginal cost than firm B. They compete in a homogeneous product Bertrand duopoly. Which of the following results will NOT occur?

• A) Q_A < Q_B
• B) Profit_A < Profit_B
• C) Revenue of firm A < Revenue of firm B
• D) Price_A < Price_B

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Definitions:

Specialization

A focus on a particular area of expertise within a profession, leading to increased efficiency and skill in that area.

Scientific Management

A management theory that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity.

Training Costs

The expenses incurred by an organization for the professional development and training of its employees, which can improve skills and performance.

Work Pace

The speed at which work tasks are performed, often a point of negotiation in labor agreements concerning productivity and worker well-being.