Solved

Two Firms Are in Bertrand Competition with Differentiated Goods

Question 97

Multiple Choice

Two firms are in Bertrand competition with differentiated goods. Firm A faces the demand curve qA = 40 - PA + 0.50PB. What is Firm A's total revenue?


A) TRA = 40PA - Two firms are in Bertrand competition with differentiated goods. Firm A faces the demand curve q<sub>A</sub> = 40 - P<sub>A</sub> + 0.50P<sub>B</sub>. What is Firm A's total revenue? A) TR<sub>A</sub> = 40P<sub>A</sub> - + 0.50P<sub>A</sub>P<sub>B</sub> B) TR<sub>A</sub> = (40 - P<sub>A</sub> + 0.50P<sub>A</sub>) P<sub>B</sub> C) TR<sub>A</sub> = (40 - P<sub>A</sub> + 0.50P<sub>A</sub>) q<sub>A</sub>. D) TR<sub>A</sub> = (40 - P<sub>B</sub> + 0.50P<sub>B</sub>) P<sub>A</sub> + 0.50PAPB
B) TRA = (40 - PA + 0.50PA) PB
C) TRA = (40 - PA + 0.50PA) qA.
D) TRA = (40 - PB + 0.50PB) PA

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q92: In Stackelberg competition, the market inverse demand

Q93: The market inverse demand curve for thrust

Q94: The fudge makers compete in a Bertrand

Q95: Suppose two sweaters compete in a Bertrand

Q96: Consider two firms engaged in Bertrand competition

Q98: Which of the following statements is TRUE?
I.

Q99: (Figure: Monopolistically Competitive Firm I) The graph

Q100: The inverse demand for tacos is given

Q101: (Figure: Market Demand Curve I) The graph

Q102: (Figure: Market Demand Curve I) The graph

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents