of the fatlowing s true about Cournot and Bertrand duopoly? uopoly firms make th
ID: 1120436 • Letter: O
Question
of the fatlowing s true about Cournot and Bertrand duopoly? uopoly firms make the same profits as under pertect competion. b) Under C firms compete by choosing output Cour Und ournot duopoly firms compete by choosing prices, whereas under Bertrand du not duopoly is a simultaneous move game whereas Bertrand duopoh·is a sequ d) er Bertrand duopoly a price war is initiated, eroding profits. 8) Which would definitely not be an example of price discrimination? a) A coffee company charges higher prices for its certified organic coffee beans th beans b) The county fair charges an entry fee and then requires you to purchase ticket and play the carnival games. c) Universities charge higher tuition for out-of-state residents. d) A doctor charges for services according to the income of patients. 9) If there are three producers in the market, with individual supply curves of p p (q2) = 10 + 2, and p (4s) = 10 + 24s, market supply is given by: 17 b) Q (P)=-P-120 c) Q(P)=-P-5 d) Q(P) = 3P_5 13 13 2Explanation / Answer
(7) (d)
In Cournot model firms compete on quantity. In Bertrand model firms compete on price, and end up on a price war that eventually lowers the price to Marginal cost (the perfectly competitive outcome).
(8) (a)
In this case, difference in price is caused by quality and price of different inputs. So, the products offered to customers are not identical.
(9) Supply curve of first individual is not visible.
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