Which of the Following Is True of the Bertrand Model

Multiple Choice

Which of the following is true of the Bertrand model of a duopoly?

A) Each firm matches the price increases by the other firm.
B) The firm that sets the lower price claims the entire market.
C) The total output supplied by the firms determines the market price.
D) Firms compete on multiple dimensions like quantity, price, and advertising.
E) The demand curve facing an individual firm is kinked at the market price.