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Suppose there are two firms operating in the same market and compete over prices. the firms sell a differentiated product and their demand is given

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Suppose there are two firms operating in the same market and compete over prices. the firms sell a differentiated product and their demand is given by Firm I's demand: -p, +0.5-P2+210 Firm 2's demand: p, - 1.5-P2+ 185 The firms' reaction function will be of the form p1=A1+a1 P2 and p2=A2+a2P1 where A1= and a1= A2= and a2= Are prices strategic substitutes Strategic complements What are the equilibrium prices in this market P1= and p2= What are the quantities demanded from each firm 91= and q2= What are the profits for each firm and T12=

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