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Suppose there are two firms, Boors and Cudweiser, each selling nonalcoholic beer. Suppose Boors and Cudweiser are not viewed as perfect substitutes but rather demand
Suppose there are two firms, Boors and Cudweiser, each selling nonalcoholic beer. Suppose Boors and Cudweiser are not viewed as perfect substitutes but rather demand for Boors is QB = 5000 - 1000PB + 100PC and demand for Cudweiser is QC = 3000 - 1500PC + 100PB. For simplicity, assume zero marginal costs. Which of the following is the Bertrand reaction function for Cudweiser? Select one: PC = 1 - 0.033PB PC = 1 + 0.033PB PB = 1.5 + 0.075PC PC = 1.5 + 0.075PB
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