This video shows you how to solve for the equilibrium price and quantity for both firms in a Bertrand duopoly.
Demand functions for the firms:
Qa = 100 - 2Pa + 3Pb
Qb = 120 - 2Pb + 2Pa
The marginal cost of production for both firms is $5 per unit. (Solutions below)
.
.
.
.
.
Solutions
Pa = $83
Pb = $74
Qa = 156
Pa = 138
![](https://s2.save4k.ru/pic/alE7u-9FRsQ/maxresdefault.jpg)