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Let Firm a Face Demand Curve QA = 100 -

question 6

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Let firm A face demand curve QA = 100 - PA + .5PB and firm B face demand curve QB = 100 - PB + .5PA. Products A and B both have constant marginal cost of production of 10 per unit (and no fixed cost) . Each firm acts as a Bertrand competitor. What are the Bertrand Equilibrium prices in this market?

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