Two firms are bidding on a contract for future production (they are competing on price). One has cost function C(qA) = 2

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answerhappygod
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Two firms are bidding on a contract for future production (they are competing on price). One has cost function C(qA) = 2

Post by answerhappygod »

Two firms are bidding on a contract for future production (they
are competing on
price). One has cost function C(qA) = 25qA −10. The other has C(qB
) = 25qB .
What type of competition is this? What will the winning price bid
be?
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