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Which statement is correct about the Bertrand model of price competition? A. The equilibrium price drops from the monopoly to the competitive level as soon
Which statement is correct about the Bertrand model of price competition? A. The equilibrium price drops from the monopoly to the competitive level as soon as the number of competitors increases from 1 to 2. B. The only Nash equilibrium is that firms set their price equal to their marginal costs. C. At equilibrium, each firm earns zero economic profit. D. Firms may not charge their marginal costs if they have capacity constraints
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