Which of the Following Is True of the Bertrand Model

question 1

Multiple Choice

Which of the following is true of the Bertrand model of a duopoly?

• A) Each firm matches the price increases by the other firm.
• B) The firm that sets the lower price claims the entire market.
• C) The total output supplied by the firms determines the market price.
• D) Firms compete on multiple dimensions like quantity, price, and advertising.
• E) The demand curve facing an individual firm is kinked at the market price.

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