Suppose Two Colas Compete in a Bertrand Market Structure with Differentiated

question 93

Multiple Choice

Suppose two colas compete in a Bertrand market structure with differentiated products. Demand for the first cola is given by where p₁ is price for cola 1 and p₂ is the price for cola 2. Demand for the second cola is
The costs of providing the colas are C₁ = q₁ and C₂ = q_2, respectively. The second cola firm will charge $____ for its cola.

• A) 50.32
• B) 48.13
• C) 46.23
• D) 44.54

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