Use the following to answer questions 11-14: Suppose that firms A, B, C and D are...

Use the following to answer questions 11-14:

Suppose that firms A, B, C and D are Bertrand duopolists in the salt industry. The market demand curve can be specified as Q=100-3p, Q=q_A+q_B+q_C+q_D.

(The firms choose prices simultaneously.)

The cost to firm A is C(q_A)=7q_A.

The cost to firm B is C(q_B)=3q_B.

The cost to firm C is C(q_C)=7q_C

The cost to firm C is C(q_D)=3q_D

Firm A will earn? (piA=?)

Firm B will earn? (piB=?)

Firm C will earn? (piC=?)

Firm D will earn? (piD=?)

Expert Solution

Rahul Sunny answered 7 months ago

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