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Author Question: Suppose the demand for Pepsi-Cola is qp = 54 - 2pp + 1pc. The demand for Coca-Cola is . Each firm ... (Read 176 times)

Garrulous

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Suppose the demand for Pepsi-Cola is qp = 54 - 2pp + 1pc. The demand for Coca-Cola is . Each firm faces a constant marginal cost of zero. Determine the Bertrand equilibrium prices. What happens to the Bertrand equilibrium prices and profits if increased differentiation causes the demand for Pepsi-Cola to become qp = 104 - 2pp + 1pc while the demand for Coca-Cola remains unchanged?


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Marked as best answer by Garrulous on Jun 18, 2019

FergA

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Garrulous

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Reply 2 on: Jun 18, 2019
YES! Correct, THANKS for helping me on my review


aliotak

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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