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4. Firms 1 and 2 are Bertrand duopolists. Firm 1 has a total cost function given by C(q1) = 2 + 4q1 and Firm 2

4. Firms 1 and 2 are Bertrand duopolists. Firm 1 has a total cost function given by C(q1) = 2 + 4q1 and Firm 2 has a total cost function given by C(q2) = 1 + 692. The demand for their product is Q = 20 -p, where Q is the total quantity demanded. What price will each firm charge in equilibrium? Prices can only be set to the nearest cent. (a) $4 and $3.99 (b) $3.99 and $2 (c) $5.99 and $6

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