Suppose that two firms compete in a market where consumers have identical preferences The benefits and costs of the two firms are B 1 , C 1 and B 2 , C 2 respectively, where B 1 C 1 B 2 C 2 What price should firm 1 set so that it can capture the entire market and maximize profits ...

With firm 1 already having a better higher B C its product price ...

Suppose that two firms compete in a market where consumers have identical preferences. The benefits and costs

Question:

Suppose that two firms compete in a market where consumers have identical preferences. The benefits and costs of the two firms are B₁, C₁ and B₂, C₂ respectively, where B₁ - C₁ > B₂ - C₂. What price should firm 1 set so that it can capture the entire market and maximize profits.