Answer the Following Questions

question 5

Essay

Answer the following questions.
a. What are the assumptions of Bertrand competition with identical goods?
b. Suppose that two firms are engaged in Bertrand competition with identical goods and each firm has a marginal cost of $33. What is the Nash equilibrium?
c. In Bertrand competition with identical goods, Firm A charges $50 and Firm B charges $40. What are the firms' market shares?

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Definitions:

Sustenance

The provision of essentials needed for growth, maintenance, and support, often relating to nourishment or support of life and business activities.

Preferences

Individual or collective tastes or choices regarding products, services, or experiences, influenced by factors such as culture, personality, and socio-economic status.

Lackluster Sales

Sales that do not meet expectations or show little to no growth, often reflecting low consumer interest or demand.

Google Glass

A wearable technology with an optical head-mounted display designed by Google to provide a hands-free smartphone-like experience, where users can access information, take photos, and navigate using voice commands.