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9. Suppose the demand for a certain good is 62(1)) = 1210 (1) when the price is p. Suppose there is single rm produces at
9. Suppose the demand for a certain good is 62(1)) = 1210 (1) when the price is p. Suppose there is single rm produces at a constant marginal cost of c = 2 and has no xed costs, so the prot. If this rm acts as a monopoly, verify that the monopoly price is 5. However, assume that there are two rms identical rms and they compete, through Bertrand Competition (described in class). However, rms can only select prices from the set Ai : {1,2, 3,4, 5}. Express this as a strategic form game by lling in the matrix below with the corresponding payos to the two rms every strategy prole (p1, pg) 6 A1 >
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