Stupendous Bertrand Duopoly Homework Help team of myhomeworkhelp.com
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About Bertrand Duopoly
Our Bertrand Duopoly Assignment Help team took the liberty to explain to you want this topic is all about. In case of oligopoly there are only few firms. So, in such a situation the outcome of any action taken by a firm will also influence the very action of all other firms. In case of Bertrand Duopoly which happens to be a model firms will be competing on price. This very model can be analyzed as simultaneous game and in this case the strategic choice is focused on price and not on quantities.
Some assumptions of Bertrand Duopoly models are as follows:
- Each firm will be getting half of the market demand on the price if two firms happen to charge the same price in question.
- Suppose if a firm decides to charge more than the other firm involved then in this situation this firm will sell nothing whereas the firm offering lower price than this firm will have all the demand at that very price.
- Maximization of profit is wanted by each firm.
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