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Suppose Two Colas Compete in a Bertrand Market Structure with Differentiated

Question 53

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Suppose two colas compete in a Bertrand market structure with differentiated products. Demand for the first cola is given by Suppose two colas compete in a Bertrand market structure with differentiated products. Demand for the first cola is given by where p<sub>1</sub> is price for cola 1 and p<sub>2</sub> is the price for cola 2. Demand for the second cola is The costs of providing the colas are C<sub>1</sub> = q<sub>1</sub> and C<sub>2</sub> = q<sub>2,</sub> respectively. The second cola firm will charge $____ for its cola. A) 50.32 B) 48.13 C) 46.23 D) 44.54 where p1 is price for cola 1 and p2 is the price for cola 2. Demand for the second cola is Suppose two colas compete in a Bertrand market structure with differentiated products. Demand for the first cola is given by where p<sub>1</sub> is price for cola 1 and p<sub>2</sub> is the price for cola 2. Demand for the second cola is The costs of providing the colas are C<sub>1</sub> = q<sub>1</sub> and C<sub>2</sub> = q<sub>2,</sub> respectively. The second cola firm will charge $____ for its cola. A) 50.32 B) 48.13 C) 46.23 D) 44.54
The costs of providing the colas are C1 = q1 and C2 = q2, respectively. The second cola firm will charge $____ for its cola.


A) 50.32
B) 48.13
C) 46.23
D) 44.54

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