Essay
Answer the following questions.
a. What are the assumptions of Bertrand competition with identical goods?
b. Suppose that two firms are engaged in Bertrand competition with identical goods and each firm has a marginal cost of $33. What is the Nash equilibrium?
c. In Bertrand competition with identical goods, Firm A charges $50 and Firm B charges $40. What are the firms' market shares?
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a. The assumptions are that (1) the two ...View Answer
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