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(25;25)=25252025=125 Alternatively, if firm A charges $30, while firm B charges $35, then firm B will not sell any units, and firm A will sell
(25;25)=25252025=125 Alternatively, if firm A charges $30, while firm B charges $35, then firm B will not sell any units, and firm A will sell Q(30)100230=40 units by itself. That means its profit will be A(30,35)=30402040=40 , while firm B will have a profit of 0 (since it sells no units). What is the Nash equilibrium of this game? 25,35 30. 35 25.25 25,30 35,30 30,25 30,30 35, 35 35,25 Iwo companies are offering picture frames with the University logo online. Consumers are indifferent between the two, and will just purchase from the cheaper option. Costs to make and send the product are $20 per item (for both firms), and let's assume the stores are limited to charging either $25,$30 or $35 The demand is such that the consumers are willing to purchase Q(P)=1002P units, where P is the lowest of the two prices the firms charge (as only the lower price is relevant: the firm charging the higher price does not sell any units; while if they charge the same price, each sells half of the demanded quantity) Example: if each firm charges $25, then the quantity demanded will be Q(25)=100225=50. Since they both charge the same price, each will sell 50/2=25 units: q1=q2=25. That means the profit of each firm will
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