[19] Consider the Bertrand model with firms producing a homogeneous product. Assuming firms have identical costs (with average cost equal to marginal cost), the Nash equilibrium coincides with A. B. D. the firms charging the monopoly price. the firms charging the Stackleberg price. the firms charging the perfectly competitive price. none of the above
[19] Consider the Bertrand model with firms producing a homogeneous product. Assuming firms have identical costs (with average cost equal to marginal cost), the Nash equilibrium coincides with A. B. D. the firms charging the monopoly price. the firms charging the Stackleberg price. the firms charging the perfectly competitive price. none of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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can you answer 19 please and thank you
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W
S
[19]
Consider the Bertrand model with firms producing a homogeneous product. Assuming firms have
identical costs (with average cost equal to marginal cost), the Nash equilibrium coincides with
A.
B.
C.
X
D.
[20]
A.
B.
C.
None of the above
D.
the firms charging the monopoly price.
the firms charging the Stackleberg price.
the firms charging the perfectly competitive price.
none of the above
In the cartel model, if two firms play the game once, the Nash equilibrium is for:
both firms to produce the quota level of output.
both firms to produce less than the quota level of output.
both firms to produce more than the quota level of output.
None of the above.
3
e
d
C
C
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4
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5
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Oll
A
6
.
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8
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9
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Transcribed Image Text:2
W
S
[19]
Consider the Bertrand model with firms producing a homogeneous product. Assuming firms have
identical costs (with average cost equal to marginal cost), the Nash equilibrium coincides with
A.
B.
C.
X
D.
[20]
A.
B.
C.
None of the above
D.
the firms charging the monopoly price.
the firms charging the Stackleberg price.
the firms charging the perfectly competitive price.
none of the above
In the cartel model, if two firms play the game once, the Nash equilibrium is for:
both firms to produce the quota level of output.
both firms to produce less than the quota level of output.
both firms to produce more than the quota level of output.
None of the above.
3
e
d
C
C
$
4
r
f
%
5
V
t
Oll
A
6
.
b
y
h
&
7
u
n
* 00
8
i
3
(
9
k
O
O
alt
Р
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