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Consider a Bertrand duopoly. The market demand is q=190-p. Consumers only buy from the firm whose price is lower. If two firms charge the similar price, they share the market equally. The marginal cost for firm 1 is 40, and the marginal cost for firm 2 is also 40. There are no fixed costs. A. Find the Nash equilibrium of this Bertrand game.B. Find the equilibrium output and profit for every firm.
What is the value proposition that Apple Pay offers consumers? How about merchants?
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