Suppose that the demand for Coke and Pepsi in a small city are given by formulas (16)

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Suppose that the demand for Coke and Pepsi in a small city are given by formulas (16) and (17). The marginal cost is $0.30 per can. Find the Nash equilibrium prices, expressing them as a function of D. How does a change in D affect the outcome of their competition? What happens as D grows very large?
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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