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Consider a Bertrand duopoly. The market demand is q=190-p. Consumers only buy from the firm whose price is lower. If two firms charge the similar price, they share the market equally. The marginal cost for firm 1 is 40, and the marginal cost for firm 2 is also 40. There are no fixed costs. A. Find the Nash equilibrium of this Bertrand game.B. Find the equilibrium output and profit for every firm.
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1. A firm has segmented its market into the following demand functions: P1 = 500 – 50Q P2 = 500 – 20Q with a cost function: MC=AC =20 a. Determine the prof
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