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Suppose two firms compete according to Bertrand competition with product dierentia- tion. Suppose the demand function for firm 1 is q1 = a1p1+b1p2 and q2

Suppose two firms compete according to Bertrand competition with product dierentia- tion. Suppose the demand function for firm 1 is q1 = a1p1+b1p2 and q2 = a2p2+b2p1. Both firms have the same cost functions C(qi) = cqi. ai, bi, c are all positive constants

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