Prices in the Bertrand model are
A)The same as prices under a shared monopoly
B)Slightly higher than prices would be under a shared monopoly
C)The same as prices would be in the perfectly competitive case
D)Slightly higher than prices would be in the perfectly competitive case

Question

Quizplus · Accepted Answer

In the Bertrand model, firms compete in price, which leads to a situation similar to perfect competition where firms charge the marginal cost of production. Therefore, the prices in the Bertrand model are the same as the prices would be in the perfectly competitive case.

Prices in the Bertrand Model Are