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Scenario: Two firms, Firm 1 and Firm 2, make differentiated products and compete in a duopoly market. The firms do not have a fixed cost. Firm 1's cost is $30 per unit, while Firm 2's cost is $25 per unit. (So they are the marginal cost and the average total cost) . There are 1,000 consumers in this market. The demand is divided between the two firm in the following way:
• If Firm 1's price is less than twice Firm 2's price, then everyone buys from Firm 1.
• If Firm 1's price is more than twice Firm 2's price, then everyone buys from Firm 2.
• If Firm 1's price is equal to twice Firm 2's price, then half of the consumers buy from Firm 1 and the other half buy from Firm 2.
-Refer to the scenario above.Suppose Firm 2 sets the price at $25.If Firm 1 sets its price above $50,then its profit is ________.If Firm 1 sets its price above $30 and below $50,then its profit is ________.If Firm 1 sets its price below $30,then its profit is ________.
Core Traits
Fundamental personality characteristics that are believed to be relatively stable and consistent across various situations.
Psychodynamic Approach
A psychological perspective that examines how unconscious processes and childhood experiences influence behavior and mental states.
Quantitative Science
A scientific approach that focuses on quantifying phenomena through numerical data and statistical methods.
Public Speaking
The act of delivering a speech or presentation in front of a live audience with the goal of informing, persuading, or entertaining.
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