micro economic

Question 22 2.5 points Save Answer Consider a market with two rms producing the same product. Each has a constant marginal cost of 5 dollarstp produce the good, and no fixed costs. The market demand curve is given by P = 1000 - 20. Suppose that each rm simultaneously sets a price at Wthh to sell the good. and then customers declde who to buy from and how much to buy. Assume that customers will always purchase from whicheverrm charges the lowest price. Therefore whicheverrm charges the lower price gets the ehtlre market demand at that prlce. Recall that a Nash equilibrium Is a situation in which each firm chooses their best strategy given the strategy that the other rm has chosen. so neither rm has an ihcehtlve to change their action. There is a unique Nash equilibrium of thlS duopoly game in which each rm sets the same price. What price does each firm set in the Nash equilibrium? 0 O O O 1 5 2 1 D D 5