If two simultaneous move Bertrand price competitors have different constant marginal costs, then any price between their marginal costs could be a Nash equilibrium price.

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In Bertrand price competition, each firm chooses a price and consumers buy the product from the firm with the lowest price. If two competitors have different constant marginal costs, any price between their marginal costs could be a Nash equilibrium price because neither firm would have an incentive to deviate from that price. If one firm sets a higher price, it will lose all its customers to the other firm with a lower price, and if one firm sets a lower price, it will earn a lower profit margin due to its higher marginal cost. Therefore, any price between the two marginal costs would provide both firms with an equal amount of profit and prevent any incentives for them to change their prices. As a result, this range of prices would be considered a Nash equilibrium.

If Two Simultaneous Move Bertrand Price Competitors Have Different Constant