Refer to the following figure:

Two firms, A and B, produce similar, but not identical, products. BRA and BRB are, respectively, the reaction functions for firms A and B, which compete primarily by price.
-If firm A is expected to charge a price of $6, B should charge a price of $______ to maximize B's profit.

Question

Refer to the following figure:

Two firms, A and B, produce similar, but not identical, products.  BRA and BRB are, respectively, the reaction functions for firms A and B, which compete primarily by price.
-If firm A is expected to charge a price of $6, B should charge a price of $______ to maximize B's profit.

Quizplus · Accepted Answer

The Answer of Refer to the following figure:

Two firms, A and B, produce similar, but not identical, products.  BRA and BRB are, respectively, the reaction functions for firms A and B, which compete primarily by price.
-If firm A is expected to charge a price of $6, B should charge a price of $______ to maximize B's profit.

Refer to the Following Figure