A vertical demand curve A) is impossible. B) reasonably ...

[olgavictoria]

A vertical demand curve
 
  A) is impossible.
  B) reasonably represents demand for essential goods.
  C) has a price elasticity of negative infinity since people will pay an infinite amount for the good.
  D) represents a normal good.

Question 2

In a Bertrand model with differentiated products,
 
  A) firms can set price above marginal cost.
  B) firms set price at marginal cost.
  C) price is independent of marginal cost.
  D) firms set price independently of one another.

[diesoon]

Answer to Question 1

B

Answer to Question 2

A

[olgavictoria]

Thank you

[diesoon]

No problemo