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Suppose the Market Demand Curve for a Bertrand Duopoly Is

Question 40

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Suppose the market demand curve for a Bertrand duopoly is downward sloping. What happens to the Nash equilibrium price and market quantity if the constant marginal cost declines?


A) Price and quantity decline.
B) Price increases and quantity declines.
C) Price decreases and quantity increases.
D) Price and quantity increase.

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