Question: Two caf s , The Java Club and Caf Robusta, split the market for coffee on your college campus. Both have a marginal cost per

Two cafs, The Java Club and Caf Robusta, split the market for coffee on your college campus. Both have a marginal cost per cup of coffee of $0.49, are equally convenient to access, and, as far as anyone can tell, serve identical coffee. The market demand for cups of coffee on an average day is Q=5,000. Assume the two cafs compete by setting a price, that is, Bertrand competition. If The Java Club sets its price at $0.60 and Caf Robusta sets its price at $0.55, The Java Club will earn a daily profit ($) of:
0
300
150
275
 Two cafs, The Java Club and Caf Robusta, split the market

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