In Bertrand competition between two firms, each firm believes that if it changes its output, the rival firm will change its output by the same amount.

Name: In Bertrand competition between two firms, each firm believes that if it changes its output, the rival firm will change its output by the same amount.
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In Bertrand competition, firms compete by setting prices, not quantities, and each firm assumes the rival's price is fixed when setting its own price.

In Bertrand Competition Between Two Firms, Each Firm Believes That