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Suppose two firms are competing in prices (Bertrand) in an industry where demand is p=200-4Q. (a) If both firms have MC=120, what is the equilibrium
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Suppose two firms are competing in prices (Bertrand) in an industry where demand is p=200-4Q.

(a) If both firms have MC=120, what is the equilibrium quantity for each firm? Profits?

(b) Suppose one firm has MC=120 and one has MC=100. Approximately how much profit does each firm

make? (c) Suppose one firm has MC=150 and one has MC=0. Approximately how much profit does each firm

make?

Step-by-step answer

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Subject: Business, Economics

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