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At a busy intersection on Route 309 in Quakertown, Pennsylvania, the convenience store and gasoline station, Wawa, competes with the service and gasoline station, Fred's

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At a busy intersection on Route 309 in Quakertown, Pennsylvania, the convenience store and gasoline station, Wawa, competes with the service and gasoline station, Fred's Sunoco. In the Nash-Bertrand equilibrium with product differentiation competition for gasoline sales, the demand for Wawa's gas is qw = 860- 250pw + 400ps and the demand for Fred's gas is qs = 860 -250ps + 400pw. Assume that the marginal cost of each gallon of gasoline is m =$6. The gasoline retailers simultaneously set their prices. What is the Bertrand-Nash equilibrium? The Bertrand-Nash equilibrium is where py =$ 23.6 and ps =$ 23.6 . (Enter your responses rounded to two decimal places.) Suppose that for each gallon of gasoline sold, Wawa earns a profit of $0.25 from its sale of salty snacks to its gasoline customers. Fred sells no products that are related to the consumption of his gasoline. What is the Nash equilibrium? The Bertrand-Nash equilibrium is where py = $ and ps = $ . (Enter your responses rounded to two decimal places.)

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