If the duopolists in problem 17 behave, instead, according to the Bertrand model, the equilibrium price and quantity for the total market will be
A)Q = 30, P = 60
B)Q = 60, P = 30
C)Q = 40, P = 50
D)Q = 45, P = 45

Question

Quizplus · Accepted Answer

In the Bertrand model, firms compete by setting prices. The equilibrium occurs when firms set prices equal to marginal cost, leading to a competitive outcome. Assuming marginal cost is 30, the equilibrium price is 30, and the quantity is 60.

If the Duopolists in Problem 17 Behave, Instead, According to the Bertrand