Question
Find the Bertrand Nash equilibrium in price and outputs as well as the profits of each firm for the following: two firms have the demand
Find the Bertrand Nash equilibrium in price and outputs as well as the profits of each firm for the following: two firms have the demand function of q1=120-2p1+p2 and q2=120-2p2+p1. TC=0. Would this mean they are substitues or complements? what is the best price response for the two firms? Draw a diagram that shows BRF and equilibrium. Are prices strategic substitutes or complements?
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Macroeconomics Principles and Applications
Authors: Robert E. Hall, Marc Lieberman
6th edition
1111822352, 1111822354, 9781133708742 , 978-1111822354
