Question: (Bertrand Problem) Graphically solve for the Bertrand equilibrium when firm 1 has a marginal cost of and firm 2 has a marginal cost of .)

(Bertrand Problem) Graphically solve for the Bertrand equilibrium when firm 1 has a marginal cost of and firm 2 has a marginal cost of .)

(Bertrand Problem) Graphically solve for the Bertrand equilibrium when firm 1 hasa marginal cost of and firm 2 has a marginal cost of.) P2 BR2 BR1 Nash Equilibrium MC2 = 2 MG = 1

P2 BR2 BR1 Nash Equilibrium MC2 = 2 MG = 1 P1 MC1 = 1 MC2 = 2

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