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Question: Consider a bottled water market in which only two firms are operating: Canyon Water and Lake Water. Assume zero cost to produce bottled water. The market demand is given by the following schedule.
Price
Quantity
0
30
10
25
16
20
26
15
34
35
5
36
(1) Construct a payoff table and find a Nash equilibrium from the table.
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Explore the supply and demand conditions for your firm's product. Examine the price elasticity of demand for the product(s) your firm sells.
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