Suppose Sarah’s constant marginal cost is $5 but Joe's is $8 call that in a Bertrand model with differentiated product, each supplier fa /her own demand: be = 100 – 10 Pjoe + 5 Psarah arah = 100 – 10 Psarah + 5 Pjoe O Suppose Joe and Sarah have the same cost functions as earlier (constant o but asymmetric demand functions

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