Answer to Question #331791 in Microeconomics for yoda

Question

True or False. Consider two firms producing an identical product with marginal costs MC1= 1.98$ & MC2 = 2$ correspondingly. The two firms set their prices simultaneously (Bertrand competition) and the lowest price gets the entire market. If they set the same price they split the market evenly. A set of equilibrium prices is p1 = 2$ and p2 = 2.01$.

Answer 1

It's been a while since this question is posted here. Still, the answer hasn't been got. Consider converting this question to a fully qualified assignment, and we will try to assist. Please click the link below to proceed: Submit order