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Solve for equilibrium prices in the following differentiated Bertrand model. Q1 = 300 - 12P1 + 4P2 + 3P3 Q2 = 275 - 10P2 +
Solve for equilibrium prices in the following differentiated Bertrand model.
Q1 = 300 - 12P1 + 4P2 + 3P3
Q2 = 275 - 10P2 + 2P1 + P3
Q3 = 250 - 8P3 + 2P1 + P2
Assume that each firm has a marginal cost of 10
a.Write down each firm's profit function.
b.Write down the profit-maximization conditions.
c.Use an equation solver to get the equilibrium prices.
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