Which of the following is a main objection to the standard Bertrand model of price competition that we have discussed? The assumption that firms directly set their own prices is unrealistic. The model predicts that equilibrium profit per-unit is strictly negative. The assumption that firms interact only one time is unrealistic. The model uses too much math.

Which of the following is a main objection to the standard Bertrand model of price competition that we have discussed? The assumption that firms directly set their own prices is unrealistic. The model predicts that equilibrium profit per-unit is strictly negative. The assumption that firms interact only one time is unrealistic. The model uses too much math.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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