firm 1 and 2 compete in a bertrand setting they produce an identical product and have a marginal cost of 20 (mc 20) the market demand is given by p 150 q a identify the oneshot nash equilibrium price charged and profit received b if the firms collude in the oneshot game, what will be the price each charges and profit each receives c if the firms compete infinitely over time, is there a trigger strategy that will enable collusion in every period explain

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The answer for part a is that both the firms will try to under cut each other and eventually wi... View the full answer