1. Some of these models assume that firms only compete against each other once. a. Give a real-world example where "one-shot" interaction seems to be a reasonable model of reality. Choose your own example rather than one we discussed in class.

b. Suppose firms in a market choose a price and then fill all orders demanded at that price (Bertrand competition). How competitive do you expect the outcome to be?

c. Suppose firms in a market choose a given quantity to produce, and then offer that quantity at the market price (Cournot competition). How competitive do you expect the outcome to be?

d. In what situations do you expect the Cournot model to be more realistic and when is the Betrand model more appropriate? For example, which model best fits the market for electricity on a hot day?