Consider two firms producing identical goods q with the same marginal cost of MC = 40.
They face a market demand of P = 140 - 0.4QD. Round answers to one decimal place.
1) What is the Bertrand equilibrium market price and market output?
2) What is each firm's Bertrand equilibrium output and profit?
3) What are consumer, producer, and total surplus in the Bertrand equilibrium?
4) Bertrand duopolies are
as total surplus is
Score = 0