Continuing with inverse demand p = 50 - Q, if each firm has marginal cost of 0, what is the difference between the equilibrium price under Cournot competition and under Bertrand competition? The Cournot price is higher than the Bertrand price by 50. The Cournot price is lower than the Bertrand price by 25. The Cournot price is higher than the Bertrand price by 50/3. Equilibrium prices under Cournot and Bertrand are the same, so the difference is zero.
Continuing with inverse demand p = 50 - Q, if each firm has marginal cost of 0, what is the difference between the equilibrium price under Cournot competition and under Bertrand competition? The Cournot price is higher than the Bertrand price by 50. The Cournot price is lower than the Bertrand price by 25. The Cournot price is higher than the Bertrand price by 50/3. Equilibrium prices under Cournot and Bertrand are the same, so the difference is zero.
Chapter9: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 18SQ
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![Continuing with inverse demand p = 50 - Q, if each firm has marginal cost of 0, what is the difference between the equilibrium
price under Cournot competition and under Bertrand competition?
The Cournot price is higher than the Bertrand price by 50.
The Cournot price is lower than the Bertrand price by 25.
The Cournot price is higher than the Bertrand price by 50/3.
Equilibrium prices under Cournot and Bertrand are the same, so the difference is zero.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cc58a7f-a992-40b4-aee2-b48b5930b05b%2Fcb295f5f-6654-4ba6-9b4f-f3b9ab433c4a%2Fv940ub_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Continuing with inverse demand p = 50 - Q, if each firm has marginal cost of 0, what is the difference between the equilibrium
price under Cournot competition and under Bertrand competition?
The Cournot price is higher than the Bertrand price by 50.
The Cournot price is lower than the Bertrand price by 25.
The Cournot price is higher than the Bertrand price by 50/3.
Equilibrium prices under Cournot and Bertrand are the same, so the difference is zero.
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