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(Solved): 3. Consider a market with two identical firms. The market demand is \( P=26-2 Q \), where \( Q= \) ...



3. Consider a market with two identical firms. The market demand is \( P=26-2 Q \), where \( Q= \) \( q_{a}+q_{b} . M C_{a}=M

3. Consider a market with two identical firms. The market demand is \( P=26-2 Q \), where \( Q= \) \( q_{a}+q_{b} . M C_{a}=M C_{b}=A C_{a}=A C_{b}=2 \). Assume there is no product differentiation in this case and the firms follow a Bertrand pricing model. Solve for the Bertrand equilibrium, calculate quantity, price and profit for each firm.


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