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Horizontally differentiated firms

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Reference no: EM131355317

Consider a market with two horizontally differentiated firms, X and Y. Each has a constant marginal cost of $ 20. Demand functions are

Qx = 100 - 2Px + 1Py

Qy = 100 - 2Py + 1Px

Calculate the Bertrand equilibrium in prices in this market.

Reference no: EM131355317

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