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A monopolist faces a market demand Q(p)=1500-5p and has cost function C(q)=120q. Suppose that the government intervenes the market and splits the monopolist into two

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A monopolist faces a market demand Q(p)=1500-5p and has cost function C(q)=120q. Suppose that the government intervenes the market and splits the monopolist into two firms with cost functions C1(q1)=120q1 and C2(q2)=120q2. Suppose the newly created firms compete in Bertrand model. In the Bertrand equilibrium, what is the output of each of the two firms? (In the following vectors, the first dimension refers to the output produced by firm 1, and the second dimension refers to that of firm 2. We assume that each firm owns half of the market share when there is a tie) (450, 450) O (900, 900) O (0, 0) O (300, 300) O (450, 225)

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