1 Which of the following statements does NOT describe the Bertrand model when firms have symmetric,.
1 Which of the following statements does NOT describe the Bertrand model when firms have symmetric, constant marginal costs of production?
a. The Bertrand model interprets firms as simultaneously choosing prices, with the lowest price firm receiving all consumer demand.
b. In the Bertrand model, each firm's best response is to price just below its rival, assuming that this price is higher than marginal cost and lower than the monopoly price.
c .The Nash equilibrium is for both firms to price at marginal cost.
d .As the number of firms increases, the Bertrand model yields a gradual transition from monopoly to perfect competition.
2. Which of the following statements does NOT describe the Cournot model?
a .The Cournot model interprets firms as simultaneously choosing quantities, with price adjusting afterward to clear the market.
b. In the Cournot model, each firm chooses quantity to maximize its own profit against its residual demand, taking rivals' quantity choices as given.
c. In the Cournot model, the equilibrium quantities chosen maximize the sum of industry profits.
d As the number of firms increases, the Cournot model yields a gradual transition from monopoly to perfect competition Mar 30 2022 01:35 PM
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