What is the equilibrium price and quantity for each firm

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Consider the market for steel which is made of two identical firms (U.S. Steel and Bethlehem) which have identical marginal costs of $5. The demand for steel is QD = 80 - 4P

(a) Suppose the firms compete ala Cournot. What is the equilibrium price and quantity for each firm?

(b) Suppose the firms acted as a collusive cartel. What is the equilibrium price and quatinty for the combined firms?

(c) Suppose the firms compete ala Bertrand. What is the equilibrium price and quantity for each firm?

Reference no: EM131038265

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