There Are Two Firms in an Industry,and Their Products Are

Multiple Choice

There are two firms in an industry,and their products are perfect substitutes for each other.Each firm had a market share of 50 percent and charged equal prices.However,when the demand for the good declined because of a recession,Firm A lowered its price to increase its sales.Firm B responded by lowering its price further.This is an example of the ________ of oligopoly.

A) Bertrand model
B) Cournot model
C) Pigouvian model
D) Pareto model