C(91) = 60q1 and [Q: 14-4738690] Consider a duopolistic market with differentiated products. The cost functions for the

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C 91 60q1 And Q 14 4738690 Consider A Duopolistic Market With Differentiated Products The Cost Functions For The 1 (34.65 KiB) Viewed 11 times

C(91) = 60q1 and [Q: 14-4738690] Consider a duopolistic market with differentiated products. The cost functions for the two firms are estimated to be C C(92) = 30q2, while the direct demand functions are estimated to be as follows: Firm 1: 91 (P1-P2) =3007-2p1 + 1p2. Firm 2: 92 (P1.P2) = 3007-2p2 + 1p1. where q₁ is Firm 1's output, q2 is Firm 2's output, p₁ is Firm 1's price, and p2 is Firm 2's price. Using the information above, find the equilibrium prices and quantities under the Bertrand model. (Enter all answers rounded to two decimal places but do no round intermediate values). P1³ P2: 91: 92: If the products in this market were instead undifferentiated, what would the equilibrium quantity for Firm 1 be if you again applied the Bertrand model? O A. Firm 1 would not produce because at the equilibrium market price, Firm 1 would apply the shut-down rule. B. There is not enough information to answer this question. O C. Firm 1 would produce the same quantity found above because product differentiation is not a factor in the Bertrand model. O D. Firm 1 would produce half of the total market quantity because the two firms' products would be viewed as perfect substitutes and the firms would split the production equally.