What are the firms profits

Reference no: EM13698967

Consider the market for carbonated water and suppose that demand is given by D(p) = 100 – 5p There are only two firms producing carbonated water, each with the same constant unit cost c = 2.

a) What are the equilibrium prices and quantities if the firms behave as Bertrand competitors? What are the firms’ profits?

Reference no: EM13698967

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