The market demand in a Bertrand duopoly is P = 10 - 3Q, and the marginal costs are $1.Fixed costs are zero for both firms.Which of the following statement(s) is/are true?
A)P = $1.
B)profits of Firm One = profits of Firm Two.
C)producer's surplus of Firm One = producer's surplus of Firm Two.
D)all of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

A) P = 10 - 3Q, not $1.
B) In a Bertrand duopoly with identical marginal costs, profits will be zero due to fierce price competition.
C) In a Bertrand duopoly with identical marginal costs, producer's surplus will be zero due to zero profit. 
Therefore, all the statements associated with this question are incorrect.

The Market Demand in a Bertrand Duopoly Is P =