Question

<br/><br/>What price will Pepsi and Coke sell if both have the same

marginal cost, and what price will they sell if one can cut its MC from $1.25 to .5?


Pepsi (p)
Coke (c)


Pc=MCc +.6Pc &amp; Pp=MCp+.6Pc


P=Price
M=Marginal Cost is $1.25

Subject: Business, Economics
What price will Pepsi and Coke sell if both have the same marginal cost, and what price will they sell if one can cut itsMC from $1.25 to .5?
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