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Find the bertrand equilibrium prices for honda crvs

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Reference no: EM131709480

Bertrand Monopolistic Competition: The Honda CRV and the Subaru Forester are strong competitors in the market for small SUVs. The demand for the Honda is equal to qH = 80 - 2PH + 0.5PS.  The demand for the Subaru is qS = 100 - 2PS + 0.5PH. ATC = MC = 10. Using calculus, derive the reaction functions of both Honda and Subaru and find the Bertrand equilibrium prices for Honda CRVs and Subaru Foresters. (Prices are in thousand$)

Reference no: EM131709480

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