Determine nash equilibrium-levels of output bertrand model

Reference no: EM133435987

Assignment:

An industry has two firms (1, 2) that sell differentiated products. If firm i faces a demand curve given by qi(pi,pj)=2000-2pi+pj, for all i={1,2} with i≠j; Determine the Nash equilibrium (the prices that the firms would set) and their respective levels of output according to the Bertrand model. The cost functions for companies 1 and 2 are C1(q1)=4q1+5 and C2(q2)=4q2+20, respectively.

Reference no: EM133435987

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