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Regarding the Bertrand competition model with product differentiation discussed in this course, (a) explain what it means that a firm's best response function is increasing
Regarding the Bertrand competition model with product differentiation discussed in this course, (a) explain what it means that a firm's best response function is increasing in the price of the other firm's product, and (b) provide an intuitive, non-mathematical explanation about the reason for this relationship (i.e. why it is increasing in the price of the other firm's product). Your combined answer for (a) and (b) must not exceed 80 words
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