Consider a duopoly in which the demand function is ∑limits_{i=1}^2{x_i}=x(p) and both firm
Question: Consider a duopoly in which the demand function is
\[\sum\limits_{i=1}^{2}{{{x}_{i}}}=x\left( p \right)\]and both firms have the same unit cost( \(c>0\) ). Assume that consumers buy from the low-price firm and that if the firms charge the same, then the demand is split equally between them. Derive the Bertrand-Nash Equilibrium. Then assume that the two firms have different unit costs and again derive the Bertrand-Nash equilibrium.
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Answer: The solution consists of 1 page
Deliverables: Word Document
Deliverables: Word Document
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