-Consider Figure 8

-Consider Figure 8.4 which depicts two firms producing a homogeneous product at the same constant marginal cost. The Bertrand-Nash equilibrium:

A) Occurs when both firms charge a zero price.
B) Occurs when both firms charge a price equal to marginal cost.
C) Occurs when both firms earn zero economic profit.
D) Is the same as you would expect to see in a Cournot industry.
E) Answers b and c.