If firms in a duopoly with homogeneous products compete on price,a Nash equilibrium is reached when each firm charges a price ________.

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In a duopoly with homogeneous products competing on price, a Nash equilibrium is reached when each firm charges a price equal to its marginal cost. This is because, in such a competitive setting, each firm aims to undercut the other's prices slightly to capture the market, driving the price down to the point where it equals the marginal cost of production.

If Firms in a Duopoly with Homogeneous Products Compete on Price,a