Coffee table makers compete in a Bertrand market structure with differentiated products. The demand curve for Frank's Coffee Table is given by where p_F is the price for a coffee table at Frank's Coffee Table and p_C is the price at Carrie's Coffee Table. The demand curve for Carrie's Coffee Table is given by
Frank's Coffee Table cost is C_F = 5q_F and Carrie's Coffee Table cost is C_C = 5q_C. In equilibrium, the price of a coffee table at the Carrie's Coffee Table is $____.

Question

Coffee table makers compete in a Bertrand market structure with differentiated products. The demand curve for Frank's Coffee Table is given by

where p_F is the price for a coffee table at Frank's Coffee Table and p_C is the price at Carrie's Coffee Table. The demand curve for Carrie's Coffee Table is given by

Frank's Coffee Table cost is C_F = 5q_F and Carrie's Coffee Table cost is C_C = 5q_C. In equilibrium, the price of a coffee table at the Carrie's Coffee Table is $____.

Quizplus · Accepted Answer

The Answer of Coffee table makers compete in a Bertrand market structure with differentiated products. The demand curve for Frank's Coffee Table is given by where p_F is the price for a coffee table at Frank's Coffee Table and p_C is the price at Carrie's Coffee Table. The demand curve for Carrie's Coffee Table is given by Frank's Coffee Table cost is C_F = 5q_F and Carrie's Coffee Table cost is C_C = 5q_C. In equilibrium, the price of a coffee table at the Carrie's Coffee Table is $____.

Coffee Table Makers Compete in a Bertrand Market Structure with Differentiated