Suppose identical price-setting duopoly firms have constant marginal costs of $40 per unit and no fixed costs. Consumers view the firms' products as perfect substitutes. The market demand is Q=200-p. In Bertrand equilibrium, firm 1's price is $ and firm 2's price is $. (Enter numeric responses using integers.)

Suppose identical price-setting duopoly firms have constant marginal costs of $40 per unit and no fixed costs. Consumers view the firms' products as perfect substitutes. The market demand is Q=200-p. In Bertrand equilibrium, firm 1's price is $ and firm 2's price is $. (Enter numeric responses using integers.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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