Duopoly with Homogenous products and Fixed Costs: price competition Consider a market with two firms and a
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Duopoly with Homogenous products and Fixed Costs: price competition
Consider a market with two firms and a market inverse demand: p= 90 - q , where q is the total market output
Firms have different marginal and fixed costs:
Firm 1: c1 = 50 and FC1 =0
Firm 2: c2 = 0 and FC2 = 50
Assume the two firms choose prices simultaneously:
(1) What is the Nash Equilibrium in prices?
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