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Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a demand function of q1 = 130-2p, + 1p2,
Suppose that identical duopoly firms have constant marginal costs of $16 per unit. Firm 1 faces a demand function of q1 = 130-2p, + 1p2, where q, is Firm 1's output, p, is Firm 1's price, and po is Firm 2's price. Similarly, the demand Firm 2 faces is q2 = 130 -2p2 + 1p1- Solve for the Bertrand equilibrium. In equilibrium, p, equals $ and pz equals $ (Enter numeric responses using integers.)
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