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You received the following information about two firms competing under a Bertrand competitive structure: (See attached image)   a. Based on this table, complete the following payoff matrix:     Firm 2       Duopoly Collusion Firm 1 Duopoly _____ , ______ _____ , ______   Collusion _____ , ______  _____ , ______

You received the following information about two firms competing under a Bertrand competitive structure: (See attached image)   a. Based on this table, complete the following payoff matrix:     Firm 2       Duopoly Collusion Firm 1 Duopoly _____ , ______ _____ , ______   Collusion _____ , ______  _____ , ______

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You received the following information about two firms competing under a Bertrand competitive structure:

(See attached image)

 

a. Based on this table, complete the following payoff matrix:

 

 

Firm 2

 

 

 

Duopoly

Collusion

Firm 1

Duopoly

_____ , ______

_____ , ______

 

Collusion

_____ , ______

 _____ , ______
F1:P-Duopoly F1: P-Collusion Duopoly Collusion F2:P-Collusion F2: P-Duopoly P1 $20 $25 $20 $25 P2 $18 $25 $25 $18 Q1 23 19 30 12 Q2 26 19 13 32 $272 $346 $323 $350 $207 $421 Profits 1 Profits 2 $370 $256
Transcribed Image Text:F1:P-Duopoly F1: P-Collusion Duopoly Collusion F2:P-Collusion F2: P-Duopoly P1 $20 $25 $20 $25 P2 $18 $25 $25 $18 Q1 23 19 30 12 Q2 26 19 13 32 $272 $346 $323 $350 $207 $421 Profits 1 Profits 2 $370 $256
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