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1.Suppose that Pepsi and Coke are competing in a horizontally differentiated Bertrand market and setting prices.
Coke face marginal cost MCc = 6 and pespsi faces marginal cost MCp = 4
(a) Write the equation for the demand for coke in terms of price Pc as a function of Pp and Qc.
(b) Determine the marginal revenue for Coke as a function of Pp and Qc.
(c) Find the equation tha ttells how much Coke would produce for any price Pp using the above.
(d) Find the reaction function for Coke (Pc as a function of Pp ) using your answer above.
(e) Find the reaction function for Pepsi.
(d) Determine the Bertrand equilibrium
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Please for provide step by step solutions
1.Suppose that Pepsi and Coke are competing in a...
4. (10 points) Assume that the demand for Pepsi is Qp 54 - 2Pp + Pc....
4. (10 points) Assume that the demand for Pepsi is Qp 54 - 2Pp + Pc. The demand for Coke is Qc -54-2Pc Pp. Each firm faces a constant marginal cost of zero. a. Determine the Bertrand equilibrium prices. Please show your work. b. What happens to the Bertrand equilibrium prices and profits if the demand for Pepsi becomes Qp 104 -2Pp Pc while the demand for Coke remains unchanged? Discuss your results.
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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?
1. Use the graph below to answer the questions: 80 70 60 50 40 30 20...
1. Use the graph below to answer the questions: 80 70 60 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P a-bQi a. b. State the equation for the demand function implied in the graph using the format Q c-dP Find the equation for Total Revenue, where TR is a function of output (Q): c. d. Find the equation for Marginal Revenue, where MR is...
Please show work! Homework Assignment 1 You must show all your work to earn points ECON...
Please show work!
Homework Assignment 1 You must show all your work to earn points ECON 3125 SP19 Name: 1. Use the graph below to answer the questions: 80 70 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P.-a-bQ a. b. State the equation for the demand function implied in the graph using the format Q.-c-dP c. Find the equation for Total Revenue, where TR...
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Pricing is provided in the question.
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4. (10 points) Assume that the demand for Pepsi is Qp 54 - 2Pp + Pc. The demand for Coke is Qc -54-2Pc Pp. Each firm faces a constant marginal cost of zero. a. Determine the Bertrand equilibrium prices. Please show your work. b. What happens to the Bertrand equilibrium prices and profits if the demand for Pepsi becomes Qp 104 -2Pp Pc while the demand for Coke remains unchanged? Discuss your results.
1. Use the graph below to answer the questions: 80 70 60 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P a-bQi a. b. State the equation for the demand function implied in the graph using the format Q c-dP Find the equation for Total Revenue, where TR is a function of output (Q): c. d. Find the equation for Marginal Revenue, where MR is...
Please show work!
Homework Assignment 1 You must show all your work to earn points ECON 3125 SP19 Name: 1. Use the graph below to answer the questions: 80 70 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P.-a-bQ a. b. State the equation for the demand function implied in the graph using the format Q.-c-dP c. Find the equation for Total Revenue, where TR...
Pricing is provided in the question.
1. Pricing along the mile-long road (30 points) Two stores selling bottled water, Goodwater and Sweetwater are located at the two extreme ends of a mile-long road. 100 customers are uniformly distributed along this road. The problem faced by the two stores here has to do with the pricing of bottled water. Owners of the two stores are aware of the following: (Figure 1) • Sweetwater charges Ps per bottle and Goodwater charges PG...
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