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24-05-2024
Business

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A market consists of two firms, Hex and Oct, which produce a differentiated product. The firms’ demand
functions are given by:
QH = 100 - 2PH + PO
QO = 80 – 2.5PO + PH
Hex has a marginal cost of £20, while Oct has a marginal cost of £15. Calculate the Bertrand equilibrium

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