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If Bertrand Competitors Sell Differentiated Products

Question 51

Multiple Choice

If Bertrand competitors sell differentiated products:


A) The firm charging the highest price will earn zero economic profits.
B) The firm charging the highest price will sell nothing.
C) Neither firm will capture the entire market by undercutting its rival's price.
D) The firm charging the lowest price will capture the entire market.
E) None of the above.

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