Suppose the daily demand for Coke and Pepsi in a small city are given by
and
where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is the Nash equilibrium price for Pepsi?
A) $.016
B) $0.45
C) $0.53
D) $0.38
Correct Answer:
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