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Starbucks and Peet's compete to sell coffee. Starbucks' demand function is given as Qx = 44 - 2Px + Py, and Peet's demand function
Starbucks and Peet's compete to sell coffee. Starbucks' demand function is given as Qx = 44 - 2Px + Py, and Peet's demand function is given as Qy = 44 - 2Py+Px where Px is the price of Starbucks' coffee and Py is the price of Peet's coffee. Starbucks' marginal cost is $8 and Peet's marginal cost is $2. Find the best response functions.
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
