1. In therium is such that firms set pricesBertrand duopoly with identical and constant identical marginal costs, the equilib-marginal costs and thusmarket power.a. homogeneous product; above; do not enjoy anyb. differentiated product; equal to; do not enjoy anyc. homogeneous product; equal to; do not enjoy anyd. differentiated product; equal to; enjoys1market power.2. If products area. more differentiated; attain lessb. less differentiated; attain morec. more differentiated; do not attain mored. more differentiated; attain morefirms3. In aprice competition model with homogeneous products andabout mar-ginal costs, firms set pricelibrium.marginal costs and make strictly positive expected profits in equi-a. Bertrand; private information; aboveb. Bertrand; public information; abovec. Cournot; private information; equal tod. Cournot; private information; above

In the Bertrand competition, firm competes on the basis of prices. The keeps on falling until it…

Bertrand duopoly 1. In the rium is such that firms set prices a. homogeneous product; above; do not en b. differentiated product; equal to; do not c. homogeneous product; equal to; do not d. differentiated product; equal to; enjoys

Bertrand duopoly 1. In the rium is such that firms set prices a. homogeneous product; above; do not en b. differentiated product; equal to; do not c. homogeneous product; equal to; do not d. differentiated product; equal to; enjoys

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. In the
rium is such that firms set prices
Bertrand duopoly with identical and constant identical marginal costs, the equilib-
marginal costs and thus
market power.
a. homogeneous product; above; do not enjoy any
b. differentiated product; equal to; do not enjoy any
c. homogeneous product; equal to; do not enjoy any
d. differentiated product; equal to; enjoys
1
market power.
2. If products are
a. more differentiated; attain less
b. less differentiated; attain more
c. more differentiated; do not attain more
d. more differentiated; attain more
firms
3. In a
price competition model with homogeneous products and
about mar-
ginal costs, firms set price
librium.
marginal costs and make strictly positive expected profits in equi-
a. Bertrand; private information; above
b. Bertrand; public information; above
c. Cournot; private information; equal to
d. Cournot; private information; above

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