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Two firms engage in Bertrand competition given the following demand system. begin mathsize 14px style table attributes columnalign left end attributes row cell D subscript
Two firms engage in Bertrand competition given the following demand system. begin mathsize 14px style table attributes columnalign left end attributes row cell D subscript 1 equals 15 minus 3 p subscript 1 plus 2 p subscript 2 comma end cell row cell D subscript 2 equals 8 minus 2 p subscript 2 plus 1 p subscript 1. end cell end table end style The marginal production cost for both firms is 2. Derive the best response functions and a Nash equilibrium
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