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2. Show that when the marginal cost of the two firms are different in the Hotelling model, then a. The equilibrium prices are given by

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2. Show that when the marginal cost of the two firms are different in the Hotelling model, then a. The equilibrium prices are given by pf = Ci + =co + t and ps = sci + =0 + t where a, is the marginal cost of firm 1 and e, is the marginal cost of firm 2. b. What would happen in this case if there is no product differentiation, that is we have the Bertrand price setting model

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