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Consider a noncollusive duopoly model with both firms supplying ketchup. The marginal cost for each firm is $1.75. The market demand is shown by the
Consider a noncollusive duopoly model with both firms supplying ketchup. The marginal cost for each firm is $1.75. The market demand is shown by the figure on the right. Let us assume that the two firms supplying ketchup are Firm A and Firm B. The price charged by Firm Ais denoted as p, and the price charged by Firm B is denoted as Pg- If the firms collude, then firm A will charge a price of: Pa = $:| and Firm B will charge a price of: P =$:| (Enter your responses rounded to two decimal places.) Price 0.5 16 2 25 3 35 4 45 Quantity (in thousands)
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