Under Bertrand competition,________.

Name: Under Bertrand competition,________.
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Under Bertrand competition, firms set prices simultaneously and independently, with the key assumption being that each firm produces until the price equals the marginal cost. This is because, in a Bertrand model, firms compete on prices, and the equilibrium is reached when a firm cannot undercut its competitor without making a loss, which happens at Price = Marginal Cost.

Under Bertrand Competition,________