ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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QUESTION 13
Consider a market where two firms (1 and 2) produce differentiated goods and compete in prices. The demand for firm 1 is given by
D₁(P₁, P2) = 140 - 2p1 + P2
and demand for firm 2's product is
D2 (P1, P2)
140 - 2p2 + P1
Both firms have a constant marginal cost of 20.
What is the Nash equilibrium price of firm 1?
(Only give a full number; if necessary, round to the lower integer; no dollar sign.)
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Transcribed Image Text:QUESTION 13 Consider a market where two firms (1 and 2) produce differentiated goods and compete in prices. The demand for firm 1 is given by D₁(P₁, P2) = 140 - 2p1 + P2 and demand for firm 2's product is D2 (P1, P2) 140 - 2p2 + P1 Both firms have a constant marginal cost of 20. What is the Nash equilibrium price of firm 1? (Only give a full number; if necessary, round to the lower integer; no dollar sign.)
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