In a Bertrand oligopoly,
A)each firm chooses simultaneously and non-cooperatively how much to produce to maximize its own profit.
B)each firm chooses simultaneously and non-cooperatively its own product's price to maximize its own profit.
C)one firm acts as a quantity leader, choosing its quantity first, while all other firms act as followers, choosing their quantities second and in reaction to the leader.
D)each firm makes its profit-maximizing decision while considering the entire market demand, the same as a monopolist.

Question

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In a Bertrand oligopoly, each firm chooses simultaneously and non-cooperatively its own product's price to maximize its own profit. This is in contrast to a Cournot oligopoly where each firm chooses its own quantity to produce. In a Bertrand oligopoly, each firm chooses its price simultaneously and non-cooperatively to maximize its own profit. This is in contrast to a Cournot oligopoly, where each firm chooses its quantity simultaneously and non-cooperatively to maximize its own profit.

In a Bertrand Oligopoly