The annual market demand for cheese is a constant 5,500 kilograms (kg) per year, regardless of the price charged. Assume that cheese is a completely undifferentiated and homogenous product. There are four potential suppliers to the cheese market with cost structures and capacities indicated below. What market price, per kilogram (kg) of cheese, arises in Nash-Bertrand equilibrium?

TABLE

BRAND UNIT COST(Kg) CAPACITY (kg/yr)

A 5.00 3000

B 9.00 1,500

C 7.50 1000

D 6.00 2,500