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Homework answers / question archive / Consider that Bertrand competition between idioblastic firms, in which the 2 firms produce a homogeneous product and provide it to the market

Consider that Bertrand competition between idioblastic firms, in which the 2 firms produce a homogeneous product and provide it to the market

Economics

Consider that Bertrand competition between idioblastic firms, in which the 2 firms produce a homogeneous product and provide it to the market. Total market demand is equal to 100 (not price sensitive). They choose prices as their strategic variables. The one with the lower price captures the entire market. In case of a tie, they share the market equally. Here, firm 1 is faced with a unit cost c? > 0, while firm 2 is faced with a unit cost c2 > 0, such that c?

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