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Suppose there are 2 firms (A,B) producing the same homogeneous good with constant marginal costs cBcA. What is the Bertrand equilibrium? Suppose cB <

Suppose there are 2 firms (A,B) producing the same homogeneous good with constant marginal costs cBcA. What is the Bertrand equilibrium? Suppose cB < cA. What is the Bertrand equilibrium? In the Bertrand model with differentiated products, the firm that sets price second has an advantage. Explain why.

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