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Bernie and Manny both sell DVD players, and both have a per-unit cost of $250 (and no capacity constraint or any fixed costs). They compete

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Bernie and Manny both sell DVD players, and both have a per-unit cost of $250 (and no capacity constraint or any fixed costs). They compete on price: the low price seller gets all the market, and they split the market equally if they have equal prices. The monopoly price for DVD players (the price that maximizes sum of the profits of both firms) is $300. a. Explain why the only Nash equilibrium has both Bernie and Manny charging $250, splitting the market, and making zero profit

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