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Two firms, P.W. Pryce and A.C. Cutting sell products that consumers view as identical. There is a market of one thousand customers that will buy
Two firms, P.W. Pryce and A.C. Cutting sell products that consumers view as identical. There is a market of one thousand customers that will buy from the cheaper of the two firms. (Customers will split 50/50 in case P.W. Price and A.C. Cutting charge the same prices.) Marginal cost is $5. Which price will the firms charge in the Nash equilibrium of the Bertrand duopoly game? O $2.50 O $5 O $10 O $50
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