Multiple Choice
Which of the following is NOT true about a differentiated-product Bertrand duopoly?
A) Firm 1 and firm 2's prices will be equal to marginal cost.
B) Firm 1's price will always be above marginal cost, while firm 2's price will be less than marginal cost.
C) Firm 1's price will always be less than marginal cost, while firm 2's price will be above marginal cost.
D) None of the answers is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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