Author Question: Relative to the Nash equilibrium in the Cournot model, the Nash equilibrium in the Bertrand model ... (Read 124 times)

fahad · **on:** Jul 1, 2018

Relative to the Nash equilibrium in the Cournot model, the Nash equilibrium in the Bertrand model with homogeneous products

A) results in the same output but a higher price.
B) results in the same output but a lower price.
C) results in a larger output at a lower price.
D) results in a smaller output at a higher price.
E) any of the above may result.

Question 2

Refer to Figure 7.2. A movement from A to B in the figure represents

A) economies of scale.
B) diseconomies of scale.
C) learning.
D) economies of scope.
E) diseconomies of scope.