In the situations below, please identify whether the firms are engaged in Cournot competition, unrestricted Bertrand competition (P=MC), or pricing to clear their capacity.

You do not have to indicate the price or the quantities, so you should be doing minimal calculations, and this question should not take long to answer!

Customers view the two firms' products or services as identical.

a)Daily demand for ice-cream is Q = 60 - P. There are two ice-cream stores. The ice-cream is made overnight and must be used on that day. Marginal cost of one ice-cream is $2.

b) Demand for breakfast in a caf is Q = 100 - P. There are two cafes in town, one with room for 30 patrons and one with room for 40 patrons. Each caf prepares breakfast after people order. The marginal cost of a breakfast is $10.

c) Two websites sell lawn-mowing services. Daily demand is Q = 500 - P. The websites pay high school students $20 per lawn, and they have an almost unlimited number of high school students who are interested in the work.

d) Excavators are pre-ordered by mining companies. Monthly demand is Q = 200 - P, where P is the price (in thousands). Marginal cost is 30 (thousand). Caterpillar can make 100 per month, and Komatsu can make 80 per month.