The Market Demand in a Bertrand Duopoly Is P =

Multiple Choice

The market demand in a Bertrand duopoly is P = 10 − 3Q,and the marginal costs are $1.Fixed costs are zero for both firms.Based on this information we can conclude that:

A) P = $7 and firm 1 will sell 7 units of output.
B) P = $1 and firms 1 and 2 will each sell 7 units of output.
C) P = $1 and firms 1 and 2 will each sell 1.5 units of output.
D) P = $1.5 and firms 1 and 2 will each sell 10 units of output.