A duopoly in which each firm produces a homogeneous good is called a ________.

Question

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Bertrand competition is a type of duopoly where firms produce homogeneous goods and compete primarily on price. This type of competition is named after Joseph Bertrand who first introduced it in 1883. In Bertrand competition, firms set prices simultaneously, and consumers purchase from the firm with the lowest price. This competition leads to firms pricing their products at marginal cost, resulting in zero profits for both firms in the long run. Bertrand competition is considered the most competitive type of duopoly, as the firms' profit margins are very low, and consumers benefit from the lower prices.

A Duopoly in Which Each Firm Produces a Homogeneous Good