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There are two firms, who produce homogeneous products and set prices simultaneously and once-and-for-all. The firms face a market demand function given by Q =
There are two firms, who produce homogeneous products and set prices simultaneously and once-and-for-all. The firms face a market demand function given by Q = 13 - P. Firm 1 has marginal costs of 3 per unit and no other costs, while Firm 2 has a marginal cost of 2 per unit and no other costs. Find the Nash equilibrium strategy.
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