Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of where q₁ is Firm 1's output, p₁ is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 92=16 Solve for the Bertrand equilibrium. In equilibrium, P₁ equals S At these prices. 9₁ equals and P2 equals S and 92 equals 01 =180 - 20, + 182. (Enter numeric responses using integers.) =160-2p₂+1p1-

Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of where q₁ is Firm 1's output, p₁ is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 92=16 Solve for the Bertrand equilibrium. In equilibrium, P₁ equals S At these prices. 9₁ equals and P2 equals S and 92 equals 01 =180 - 20, + 182. (Enter numeric responses using integers.) =160-2p₂+1p1-

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter12: Price And Output Determination: Oligopoly

Section: Chapter Questions

Problem 1E

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