A duopoly in which two identical firms are engaged in Bertrand competition will not distort prices from their competitive levels.

Name: A duopoly in which two identical firms are engaged in Bertrand competition will not distort prices from their competitive levels.
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Question

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In Bertrand competition, firms compete by setting prices, and with identical products, they will lower prices to the marginal cost level, which is the competitive market price.

A Duopoly in Which Two Identical Firms Are Engaged in Bertrand