According to the Bertrand Model, If Both Firms in the Industry

Multiple Choice

According to the Bertrand model, if both firms in the industry face identical demands and marginal cost of production:

A) The first firm to enter the industry will charge a higher price than the second firm.
B) The first firm to enter the industry will charge a lower price than the second firm.
C) Both firm's will charge the same price.
D) The first firm to enter the industry will earn higher profits than the second firm.
E) The first firm to enter the industry will earn lower profits than the second firm.