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The Unrealistic Predictions of the Simple Bertrand Model May Be

Question 30

Multiple Choice

The unrealistic predictions of the simple Bertrand model may be explained by the assumption of:


A) Output differentiation.
B) The ability of firms to fully satisfy market demand at any price.
C) The dynamic nature of the of the price-setting game.
D) Capacity constraints.
E) The assumption of constant marginal cost.

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