Two firms compete by choosing price

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Two firms compete by choosing price. Their demand functions are Q1 = 40 – P1 + 0.5P2 and Q2 = 20 +0.5P1 - P2where P1 and P2 are the prices charged by each firm, respectively, and Q1 and Q2 are the resulting demands. a. Firm 1’s best response function (reaction function) is

Reference no: EM131171083

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