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Homework answers / question archive / Bertrand duopolists, Firm 1 and Firm 2, face inverse market demand and both have marginal costs, 

Bertrand duopolists, Firm 1 and Firm 2, face inverse market demand and both have marginal costs, 

Marketing

Bertrand duopolists, Firm 1 and Firm 2, face inverse market demand and both have marginal costs, . The equilibrium output this market has will be:

a.

b.

c.

d.

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The correct answer is :(A). 30.

Given that;

 

In Bertrand model of oligopoly, the two firms charge price equal to marginal cost:

 

Since there are two firms, each will produce 15 units of output leading to a total market output of 30 units.

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