What is the bertand-nash equilibrium outcome

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Reference no: EM13896761

Suppose firm 1 and firm 2 each produce the same product and face a market demand curve described by

Q= 5000 - 200P. Firm 1 has a unit cost of production c1 equal to 6 whereas firm 2 has a higher unit cost of production c2 equal to 10

a. what is the Bertand-Nash equilibrium outcome?

b. what are the profits of each firm?

c. Is this outcome efficient?

Reference no: EM13896761

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