Question: Why is the intersection between firms' best-response functions in Figure 12.2 for the Cournot model or 12.3 for the Bertrand model with differentiated products a

Why is the intersection between firms' best-response functions in Figure 12.2 for the Cournot model or 12.3 for the Bertrand model with differentiated products a graphical illustration of the Nash equilibrium concept?
Figure 12.2
Cournot Best-Response Functions

Figure 12.3
Bertrand Model with Differentiated Products

Firm B's output (qB 120 Firm A's best- response function 60 Nash 40_-equilibrium Firm B's best- response function 40 60 120 Firm A' output (gA) Firm B's price (Pa) Firm As best-response function Firm B's best-response function / Nash equilibrium Firm A's PA price (PA)

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