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Solve clearly 2. Two firms that produce good r are engaged in Bertrand competition, and both have marginal cost equal to 5. If they choose
Solve clearly
2. Two firms that produce good r are engaged in Bertrand competition, and both have marginal cost equal to 5. If they choose the same price they share the market equally. One day the government decides that the prices of good a must by law take integer values (i.e. only values such as 0, 1, 2... etc). Is there now an equilibrium in which both firms make positive profitsStep by Step Solution
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