Using the same demand and cost functions, suppose that firms competed in prices instead of quantities. Solve

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Using the same demand and cost functions, suppose that firms competed in prices instead of quantities. Solve for the Bertrand equilibrium, including market demand, market price and profits earned by each firm.

Contrast your answers to those in the previous exercises.

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Managerial Economics A Strategic Approach

ISBN: 285451

2nd Edition

Authors: Robert Waschik ,Tim Fisher ,David Prentice

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