The market demand in a Bertrand duopoly is P = 15 - 4Q, and the marginal costs are $3. Fixed costs are zero for both firms. Which of the following statement(s) is/are true?
A) P = $3
B) P = $10
C) P = $15
D) None of the answers is correct.

Question

Quizplus · Accepted Answer

In a Bertrand duopoly with identical marginal costs, firms will price at marginal cost. Since the marginal cost is $3, the price will be $3.

The Market Demand in a Bertrand Duopoly Is P =