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Suppose identical price-setting duopoly firms have constant marginal costs of $50 per unit and no fixed costs. Consumers view the firms' products as perfect substitutes. The market demand is Q = 150 - P.

In Bertrand equilibrium,

1. firm 1s price is:

2. Firm 2s price is:

 

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Romarie Khazandra Marijuan
Romarie Khazandra MarijuanLv10
28 Sep 2019

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