Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of q1 = 70 – 2p1 + 1p2, where q, is Firm 1's output, p4 is Firm 1's price, and p, is Firm 2's price. Similarly, the demand Firm 2 faces is 92 = 70 – 2p2 + 1p1. Solve for the Bertrand equilibrium. In equilibrium, p, equals $ and p, equals $ (Enter numeric responses using integers.)

Suppose that identical duopoly firms have constant marginal costs of $10 per unit. Firm 1 faces a demand function of q1 = 70 – 2p1 + 1p2, where q, is Firm 1's output, p4 is Firm 1's price, and p, is Firm 2's price. Similarly, the demand Firm 2 faces is 92 = 70 – 2p2 + 1p1. Solve for the Bertrand equilibrium. In equilibrium, p, equals $ and p, equals $ (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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Solve for the Bertrand equilibrium for the firms described below if Firm 1's marginal cost is $15 per unit and Firm 2's marginal cost is $25 per unit. Firm 1 faces a demand function of 91 = 140 – 2p, + 1p2, where 91 is Firm 1's output, p, is Firm 1's price, and p, is Firm 2's price. Similarly, the demand Firm 2 faces is 92 = 140 - 2p2 + 1p1. Solve for the Bertrand equilibrium. In equilibrium, p, equals and p2 equals (Enter numeric responses using integers.) At these prices, q, equals and 92 equals The total quantity supplied is
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