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Title: Suppose two firms with differentiated products are competing on price. The reaction curve for Firm ... Post by: corie on Oct 25, 2017 Suppose two firms with differentiated products are competing on price. The reaction curve for Firm 1 is P1 = 4 + 0.5 P2, and the reaction curve for Firm 2 is P2 = 4 + 0.5P1. What is the equilibrium price outcome in this market?
A) P1 = P2 = 4 B) P1 = P2 = 6 C) P1 = P2 = 8 D) P1 = 6 and P2 = 8 Title: Re: Suppose two firms with differentiated products are competing on price. The reaction curve for ... Post by: Bart_arg on Oct 25, 2017 Content hidden
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