Consider a market of two (2) firms that produce the same thing. Market demand is P = 60 - Q, and marginal cost is $7 for Firm 1 and $5 for Firm 2. If the firms engage in price competition, which of the following would be the most reasonable outome for market price?

Consider a market of two (2) firms that produce the same thing. Market demand is P = 60 - Q and marginal cost is $5 for both firms. If the firms engage in price competition and each firm has a production capacity of 25 units, what would be the expected market price?

Consider a market of two (2) firms that produce differentiated products. Market demand is P = 60 - Q and marginal cost is $5 for both firms. If the firms engage in price competition, what would be the most reasonable price outcome for this market?

QUESTION 3 Consider a market of two (2) firms that produce the same thing. Market demand is P = 60 - Q, and marginal cost is $7 for Firm 1 and $5 for Firm 2. If the firms engage in price competition, which of the following would be the most reasonable outome for market price? O P = $6.50 O P = $7 O P = $5 O P = $12 QUESTION 4 Consider a market of two (2) firms that produce the same thing. Market demand is P = 60 - Q and marginal cost is $5 for both firms. If the firms engage in price competition and each firm has a production capacity of 25 units, what would be the expected market price? O P = $10 O P = $0 O P = $50 O P = $5 QUESTION 5 Consider a market of two (2) firms that produce differentiated products. Market demand is P = 60 - Q and marginal cost is $5 for both firms. If the firms engage in price competition, what would be the most reasonable price outcome for this market? O P = $0 O P = $7 O P = $32.50 O P = $5