Suppose the demand for Pepsi is qp = 54 - 2pp + 1p.The demand for Coke is
qc = 54 - 2pc + 1pp.Each firm faces a constant marginal cost of zero.Determine the Bertrand equilibrium prices.What happens to the Bertrand equilibrium prices and profits if increased differentiation causes the demand for Pepsi to become qp = 104 - 2pp + 1pc while the demand for Coke remains unchanged?
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Q82: Q84: Consider a market with (inverse)demand p = Q85: Assuming a homogeneous product,the Bertrand duopoly equilibrium Q86: Consider two Cournot competitors selling complementary goods Q89: Suppose the demand for Pepsi is qp Q90: One criticism of the Bertrand pricing model Q99: What happens in a duopoly if both Q100: The Bertrand model is a more plausible Q106: Product differentiation Q114: Because firms selling a homogeneous product set
A) may allow firms to price
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