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17. There are two rms 7; E {A, B} in a market with differentiated goods. They choose prices simultaneously. After prices are set, demand for
17. There are two rms 7; E {A, B} in a market with differentiated goods. They choose prices simultaneously. After prices are set, demand for each rm is given by (1.; = 90 1191- 1104 where 2' = A, B and p_.; represents the price of the other rm. The 2 4 Y produce enough to meet the required demand, paying a total cost c.- (qi) = 15 + 206122 What is the equilibrium price for both rms? a) $54 = 80,193 = 100 b) m = 80,103 = 80 (c) m = 160. p3 = 80 (d) m = 160. p3 = 160 ( ( (e) None of the above Options
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