(Answered) Assume that the pizza market consists of two firms conans

Economics

Assume that the pizza market consists of two firms, Conan's and Pizza Hut. The price of a Conan pizza is denoted by Pc and the price of a Pizza Hut Pizza is P_h.Both sellers have a marginal cost of $5 for another pizza. The demand curves facing the two firms are:

Conan: Q_c= 600 - 30P_c+ 20P_h

Pizza Hut: Q_h= 625 - 41P_h+ 17P_c.

Calculate the equilibrium prices.

Suppose that Conan reduces its marginal cost to $3. What are the new equilibrium prices?

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