Given constant unit costs of production, which of the following solutions to the duopoly problem generates the greatest benefits to consumers?
A)Collusive equilibrium
B)Nash equilibrium in quantities
C)Cournot equilibrium
D)Bertrand equilibrium

Question

Quizplus · Accepted Answer

In a Bertrand equilibrium, firms compete by setting prices, leading to a situation where prices are driven down to marginal cost, resulting in the greatest benefits to consumers through lower prices.

Given Constant Unit Costs of Production, Which of the Following