Problem
Now consider a slight variant of the situation described above. Imagine that firm 1's marginal cost is $1, rather than $2, and that every other aspect of the problem is as described in question 2. Also, assume that prices must be expressed in dollars and cents, so that $4.07 is an admissible price but $4.065 is not. What is the Bertrand equilibrium?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.