When two identical firms compete in Bertrand competition, in equilibrium: a) both firms make a positive profit.
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Question:
When two identical firms compete in Bertrand competition, in equilibrium:
a) both firms make a positive profit.
b) both firms charge a price above marginal cost.
c) one firm gets driven out of the market.
d) both firms charge the same price, which is equal to their marginal cost.
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
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