Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by...

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Two firms produce closely-related products, and have marginal costs MC1=10 and MC2=20. The market supplied by...

Two firms produce closely-related products, and have marginal costs MC₁=10 and MC₂=20. The market supplied by firm 1 has demand Q₁=100-2p₁+p₂, while 2's market has demand Q₂=100+p₁-2p₂. The two firms are engaged in Bertrand price competition.

3(a)What is the intercept of firm 1's price reaction curve? (One digit after the decimal point only)

3(b) What is the slope of firm 1's price reaction curve? (One digit after the decimal point only)

3(c) What is the intercept of firm 2's price reaction curve?

business economics

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Answer 1

Answer #1

JP,120te /00-4 P+20 O 20lo0 P-2P2) =100PL+ PI P-2P Interept C) J40 3 5

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