Question

Choose a,b,c,d

4. Consider about a duopoly case: two firms compete by choosing prices for two differentiated goods. Their demand functions are Q1 20-P1 + P2 and Q2 20 +P1-P2, where Pi and P2 are the prices charged by each firm, respectively, and Qi and Q2 are the resulting demands. Fixed costs and marginal costs are both zero. (o) Suppose the two frms set their prices at the same time. Find the resalting Na equilibrium. What price will each firm charge, how much will it sell, and what will its pr be? (b) Suppose Firm 1 sets its price first and then Firm 2 sets its price. What price will each charge, how much will it sell, and what will its profit be?

Answer 1

Dear, here there is no options as a, b, c, d. Hope you have to add it. re post the question we will help you. Thank you

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