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2.BertrandNow suppose that instead of competing on quantities, the two departments are competingby setting prices following...

2.BertrandNow suppose that instead of competing on quantities, the two departments are competingby setting prices following the Bertrand Oligopoly Model. Marginal cost remains the sameand total market demand for economics degrees is 720.

2.1 What is the Nash-Bertrand equilibrium for this market?Now suppose that the two departments enter the market for online degrees with differentiated products. The marginal cost of each degree drops to $400 for each department. Suppose economics faces a demand function ofqe= 10000−200pe+ 100pme. Suppose man. econ faces ademand function ofqme= 10000−200pme+ 100pe.

2.2 What is the Nash-Bertrand equilibrium now?

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Rahul Sunny answered 2 years ago
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