1. The market demand for a good is Q=120p in each of an infinite number of periods. There are two firms with zero average costs. The discount factor is 0.9. What is the present value of the profit earned byeachfirm if they engage in Bertrand competition? Answer format is one numeric value.
2. The market demand for a good is Q=120p in each of an infinite number of periods. There are two firms with zero average costs. The discount factor is 0.9. What is the present value of the profit earned byeachfirm if they engage in Cournot competition? Answer format is one numeric value.