Consider a market with two horizontally differentiated firms X and
Consider a market with two horizontally differentiated firms, X and Y. Each has a constant marginal cost of $20. Demand functions are:
Qx = 100 – 2Px + 1Py
Qy = 100 – 2Py + 1Px
Calculate the Bertrand equilibrium in prices in the market.
Consider a market with two horizontally differentiated firms X and