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Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of q = 100 -2p, +
Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of q = 100 -2p, + p2, where q is Firm 1's output, Pi is Firm 1's price, and p2 is Firm 2's price. Similarly, the demand Firm 2 faces is 92 = 100 - 2p2 + p1 . Solve for the Nash-Bertrand equilibrium. M
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