E1 Find Bertrand equilibrium and its outputs for the following asymmetric duopoly: q 1(p1, p2) = 16 - p1 + 0.5 p2, C1(q1) = 4q1; q 2(p1, p2) = 16 + 0.5 p1 - p2, C2(q2) = 6q2. (Note that the average and marginal costs are: AC1=MC1 = c1 = 4, AC2=MC2 = c2 = 6)

E1 Find Bertrand equilibrium and its outputs for the following asymmetric duopoly: q 1(p1, p2) = 16 - p1 + 0.5 p2, C1(q1) = 4q1; q 2(p1, p2) = 16 + 0.5 p1 - p2, C2(q2) = 6q2. (Note that the average and marginal costs are: AC1=MC1 = c1 = 4, AC2=MC2 = c2 = 6)

Survey of Economics (MindTap Course List)

9th Edition

ISBN:9781305260948

Author:Irvin B. Tucker

Publisher:Irvin B. Tucker

Chapter9: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 19SQ

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