Two firms are competing in a Bertrand market. Each firm's residual demand and cost functions are 91 = 150 – 5p, + 4p2 TC, = 5q1 q2 = 125 – 3.8p2 + 5p1 TC2 = 3.8q2 Assume no differentiation. What is the market price? Round to two decimals.

Two firms are competing in a Bertrand market. Each firm's residual demand and cost functions are 91 = 150 – 5p, + 4p2 TC, = 5q1 q2 = 125 – 3.8p2 + 5p1 TC2 = 3.8q2 Assume no differentiation. What is the market price? Round to two decimals.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter12: Price And Output Determination: Oligopoly

Section: Chapter Questions

Problem 5E

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