Bertrand competition occurs when oligopolists compete with regard to
A)prices.
B)quantities.
C)both prices and quantities.
D)neither prices nor quantities.
E)product differentiation.

Question

Quizplus · Accepted Answer

Bertrand competition occurs when firms compete by setting prices for identical or differentiated products. Firms assume that other firms' output remains constant, and they compete to sell more by lowering prices. Thus, the correct answer is prices (choice A).

Bertrand Competition Occurs When Oligopolists Compete with Regard to