Suppose the demand for pepsi is qp 54 - 2pp 1p the demand, Business Economics

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Suppose the demand for pepsi is qp 54 - 2pp 1p the demand

Suppose the demand for Pepsi is qp = 54 - 2pp + 1p. The demand for Coke is qc = 54 - 2pc + 1pp. Each firm faces a constant marginal cost of zero. Determine the Bertrand equilibrium prices. What happens to the Bertrand equilibrium prices and profits if increased differentiation causes the demand for Pepsi to become qp = 104 - 2pp + 1pc while the demand for Coke remains unchanged?

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Business Economics: Suppose the demand for pepsi is qp 54 - 2pp 1p the demand

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