Which of the following is true about a differentiated-product Bertrand duopoly?
A. Firm 1 and firm 2's reaction functions are downward sloping.
B. Firm 1 and firm 2's reaction functions are upward sloping.
C. In a differentiated-product Bertrand duopoly neither firm has a reaction function.
D. Firm 1's reaction function is downward sloping but firm 2's reaction function is upward sloping.
Answer: B
Economics
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