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Consider a market with two horizontally differentiated firms, X and Y. Each has a constant marginal cost of $ 20. Demand functions are
Qx = 100 - 2Px + 1Py
Qy = 100 - 2Py + 1Px
Calculate the Bertrand equilibrium in prices in this market.
Business Management, Management Studies
Priced at $20 Now at $10, Verified Solution
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