According to the Bertrand model, if both firms in the industry face identical demands but different marginal production costs, then:

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In the Bertrand model, when firms face identical demands but have different marginal costs, the firm with the lower marginal cost can undercut the price of the higher-cost firm. This allows the lower-cost firm to capture the entire market, effectively becoming a monopoly, as it can always set a price slightly below the higher-cost firm and still make a profit.

According to the Bertrand Model, If Both Firms in the Industry