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Solve clearly Consider the model of Bertrand competition with linear demand Q(p) 2 mm, a p] and with two- firms, in which demand is split

Solve clearly

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Consider the model of Bertrand competition with linear demand Q(p) 2 mm, a p] and with two- firms, in which demand is split if the same price is set. Suppose linear demand with a = 8, and constant cost 6 = 3 per unit, suppose Firm 1 chooses price p1 = 7 and Firm 2 chooses price 392 = 6. which of these price5p'1 would be a profitable deviation From 131 For Firm 1? C12 [:13 I4 .5 [:16 [:17 Suppose now a = 16, and constant cost c = 8 per unit, "\"392 = 14. what is the best-response For Firm 1

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