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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, the profit of firm 1 and profit of firm 2 are given by (27000, 13500) (18000, 18000) O (0, 0) O (20250, 10250) O (18000, 9000)

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