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1The market demand curve for mineral water is P=a-bQ. Suppose that there are two firms that produce mineral water, each with a constant marginal cost
1The market demand curve for mineral water is P=a-bQ. Suppose that there are two firms that produce mineral water, each with a constant marginal cost of c dollars per unit. Fill in the entries for each of the following duopoly models. a) Bertrand model (Price competition). b) Cournot model (quantity competition). c) Collusion. Model Q1 Q2 Q P (Profit margin)1 (Profit margin)2 Bertrand Cournot Collusion Write up your analysis, and compare your answers. In which model, firms earn the highest profit margin
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