In the Bertrand (price competition) model with two competing firms, Group of answer choices Firms will end up selling their goods for a price less than average cost in long run equilibrium. The combined profits of the two firms generally exceed the profits that a monopolist could make in the same market. Firms are better able to maintain price above marginal cost if they differentiate their products from each other. firms are better able to maintain price above marginal cost if they make their products identical to each other.