Please help with these 3 T/F: just the answer is needed - true or false 1. Consider a duopoly model in which two firms have the same cost functions. Comparing a Stackelber model and a Cournot model, a Stackelberg leader will necessarily make at least as much profit as he would if he acted as a Cournot duopolist. 2. In the Bertrand model, each firm decides its quantity simultaneously, and the price will be determined by the market demand with the total quantities supplied. 3. A duopoly in which two identical firms are engaged in Bertrand competition will not distort prices from their competitive levels.
Please help with these 3 T/F: just the answer is needed - true or false 1. Consider a duopoly model in which two firms have the same cost functions. Comparing a Stackelber model and a Cournot model, a Stackelberg leader will necessarily make at least as much profit as he would if he acted as a Cournot duopolist. 2. In the Bertrand model, each firm decides its quantity simultaneously, and the price will be determined by the market demand with the total quantities supplied. 3. A duopoly in which two identical firms are engaged in Bertrand competition will not distort prices from their competitive levels.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 9SQP
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Please help with these 3 T/F: just the answer is needed - true or false
1. Consider a duopoly model in which two firms have the same cost functions. Comparing a Stackelber model and a Cournot model, a Stackelberg leader will necessarily make at least as much profit as he would if he acted as a Cournot duopolist.
2. In the Bertrand model, each firm decides its quantity simultaneously, and the price will be determined by the market demand with the total quantities supplied.
3. A duopoly in which two identical firms are engaged in Bertrand competition will not distort prices from their competitive levels.
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