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Two Firms Are in Bertrand Competition with Differentiated Goods

Question 11

Multiple Choice

Two firms are in Bertrand competition with differentiated goods. Firm A faces the demand curve qA = 40 - PA + 0.50PB. What is Firm A's total revenue?


A) TRA = 40PA - Two firms are in Bertrand competition with differentiated goods. Firm A faces the demand curve q<sub>A</sub> = 40 - P<sub>A</sub> + 0.50P<sub>B</sub>. What is Firm A's total revenue? A) TR<sub>A</sub> = 40P<sub>A</sub> - + 0.50P<sub>A</sub>P<sub>B</sub> B) TR<sub>A</sub> = (40 - P<sub>A</sub> + 0.50P<sub>A</sub>) P<sub>B</sub> C) TR<sub>A</sub> = (40 - P<sub>A</sub> + 0.50P<sub>A</sub>) q<sub>A</sub>. D) TR<sub>A</sub> = (40 - P<sub>B</sub> + 0.50P<sub>B</sub>) P<sub>A</sub> + 0.50PAPB
B) TRA = (40 - PA + 0.50PA) PB
C) TRA = (40 - PA + 0.50PA) qA.
D) TRA = (40 - PB + 0.50PB) PA

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