In a Bertrand model of oligopoly:

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In a Bertrand model of oligopoly, firms produce homogenous products and set their prices simultaneously in order to maximize their profits. This is based on the assumption that consumers will always choose the product with the lowest price, leading to fierce competition among firms to undercut each other's prices. As a result, prices are driven down to the marginal cost of production, which is the same for all firms in the industry. Therefore, the best choice is B - firms produce homogenous products and set their prices simultaneously.

In a Bertrand Model of Oligopoly