Microsoft now has a Surface Laptop, which is intended to compete with Apple's Macbook line of laptops. Interesting these Surface Laptops are very expensive and are priced similarly to comparably equipped Macbooks. Explain in detail to me, in economic terms, why Microsoft chooses to keep prices on-par with the Macbook, as opposed to trying to price its new product significantly below that of the Macbook when it entered the market. Your answer should include a discussion of the Bertrand model, the value of product differentiation, and how the product differentiation affects the pricing incentives of both Microsoft and Apple regarding their laptops. (Hint: think about what would have been the outcome if Microsoft had come into the market with a lower price?)