Two identical firms that share a market and produce a homogenous good will find the Bertrand Oligopoly LEAST attractive because
A) Cartels generate the highest joint profit.
B) a Cournot Oligopoly will generate more profit than a Bertrand Oligopoly.
C) they want to avoid a price war that leads to profit erosion and P = MC.
D) All of the above.
D
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If aggregate demand had grown faster than it did from 2009 to 2010, then the U.S. economy would have experienced
a. higher unemployment and higher inflation. b. lower unemployment and lower inflation. c. higher unemployment and lower inflation. d. lower unemployment and higher inflation.
Government actions that were taken in order to stimulate the economy during the Great Recession of 2007-09 included the following, except:
A. A significant reduction of interest rates to nearly zero B. A large increase in transfer payments C. An increase in the deficit-spending of the government D. A sharp increase in the natural rate of unemployment