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10 Suppose that the demand equations for the product of two profit-maximizing firms are Q1=505P1+2.5P2Q2=202.5P2+5P1 (PE12.10b) The firms' total cost functions are TC1=2Q1TC2=5Q2 Suppose that

image text in transcribed 10 Suppose that the demand equations for the product of two profit-maximizing firms are Q1=505P1+2.5P2Q2=202.5P2+5P1 (PE12.10b) The firms' total cost functions are TC1=2Q1TC2=5Q2 Suppose that these firms are Bertrand competitors. a. What is each firm's best-response function? b. What is the Bertrand-Nash equilibrium for this game? c. What is the output and profit for each firm

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