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Firms A and B both produce an identical product, steel. The marginal cost of producing steel is $501/tonne for A and $490/tonne for B. The
Firms A and B both produce an identical product, steel. The marginal cost of producing steel is $501/tonne for A and $490/tonne for B. The fixed production costs are zero for both firms. Industry demand is given by Q = 400 - 0.2P. Assume that price must be an integer (e.g., 405, 406, etc). In the Nash-Bertrand equilibrium, profits earned by Firm B is equal to _______. (do not enter a dollar sign or comma in the value you enter).
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