An important weakness of the Bertrand, Collusion, and Cournot models is that they assume the game is:
A)played repeatedly.
B)fair.
C)supervised by government.
D)played once only.

Question

Quizplus · Accepted Answer

The three models assume the game is played once only, which is not always the case in real-world situations. In reality, many markets involve repeated interactions and ongoing competition among firms. Therefore, the models may not accurately capture the dynamics of long-term competition and strategic behavior.

An Important Weakness of the Bertrand, Collusion, and Cournot Models