Two firms competing in a duopoly produce differentiated products and face direct demand functions estimated to...
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Two firms competing in a duopoly produce differentiated products and face direct demand functions estimated to be:- Firm 1: 9₁ (P₁-P2) = 62.6-5p₁ +2.7p2 Firm 2: 42 (P1-P2) = 87.3-5p2 +2.90₁ Firm 1 has a cost function estimated to be C (91) = 10q1, while Firm 2 has a cost function estimated to be C(9₂) = 1092 In the Nash-Bertrand equilibrium, Firm 2 will charge a price of $18.44 per unit. What price will Firm 1 charge? Firm 1 will charge $ per unit. (Round your answer to two decimal places.) Two firms competing in a duopoly produce differentiated products and face direct demand functions estimated to be:- Firm 1: 9₁ (P₁-P2) = 62.6-5p₁ +2.7p2 Firm 2: 42 (P1-P2) = 87.3-5p2 +2.90₁ Firm 1 has a cost function estimated to be C (91) = 10q1, while Firm 2 has a cost function estimated to be C(9₂) = 1092 In the Nash-Bertrand equilibrium, Firm 2 will charge a price of $18.44 per unit. What price will Firm 1 charge? Firm 1 will charge $ per unit. (Round your answer to two decimal places.)
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SOLUTION In a NashBertrand equilibrium each firm sets its price taking the other firms price as give... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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