Bertrand price competitors can recover some market power when they differentiate their products.
Answer the following statement true (T) or false (F)
True
Rationale: In the absence of product differentiation, the Bertrand competitors lose market power and price at MC. But with product differentiation, they can price above MC and thus recover some market power.
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A tripling of foreign aid would come close to curing global poverty
Indicate whether the statement is true or false
The larger the fraction of an investment financed by borrowing, the greater the potential for both profits and losses from that investment
a. True b. False Indicate whether the statement is true or false
To maximize its profit, a monopolistically competitive firm chooses its level of output by looking for the level of output at which
a. price equals marginal cost. b. marginal revenue equals marginal cost. c. average total cost is minimized. d. All of the above are correct.
Suppose that a firm operating in perfectly competitive market sells 100 units of output. Its total revenues from the sale are $500 . Which of the following statements is correct? (i) Marginal revenue equals $5. (ii) Average revenue equals $5. (iii) Price equals $5
a. (i) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)