Solve for the Bertrand equilibrium for the firms described below if Firm 1's marginal cost is $15 per unit and Firm 2's marginal cost is $25 per unit.Firm 1 faces a demand function of91 = 140 – 2p, + 1p2,where91is Firm 1's output, p, is Firm 1's price, and p, is Firm 2's price. Similarly, the demand Firm 2 faces is92 = 140 - 2p2 + 1p1.Solve for the Bertrand equilibrium.In equilibrium, p, equalsand p2 equals(Enter numeric responses using integers.)At these prices, q, equalsand92 equalsThe total quantity supplied is

In a Bertrand competition there are 2 firms competing with each other in terms of price. The firms…

Solve for the Bertrand equilibrium for the firms described below if Firm 1's marginal cost is $15 per unit and Firm 2's marginal cost is $25 per unit. Firm 1 faces a demand function of 9, = 140 – 2P, + 1P2. where q, is Firm 1's output, p, is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 92 = 140 - 2p2 + 1P1. Solve for the Bertrand equilibrium. In equilibrium, p, equals and p2 equals O. (Entor numeric responses using intogers.) At these prices, q, equals O and a2 equals [ The total quantity supplied is O.

Solve for the Bertrand equilibrium for the firms described below if Firm 1's marginal cost is $15 per unit and Firm 2's marginal cost is $25 per unit. Firm 1 faces a demand function of 9, = 140 – 2P, + 1P2. where q, is Firm 1's output, p, is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 92 = 140 - 2p2 + 1P1. Solve for the Bertrand equilibrium. In equilibrium, p, equals and p2 equals O. (Entor numeric responses using intogers.) At these prices, q, equals O and a2 equals [ The total quantity supplied is O.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter5: Supply, Demand, And Price: Applications

Section5.7: Application 7: Why Do Colleges Use Gpa,s Actss, And Sats, For Purposes Of Admission?

Problem 2ST

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