Suppose that Market demand for golf balls is described by Q= 90-3p, Where Q is measured in kilos of balls. There are two firms that supply the market. Firm 1 can produce a kilo of balls at a constant unit cost of $15 whereas firm 2 have a constant unit cost equal to $10. a. suppose firms compete in quantities.
Suppose firms compete in price. How much does each firm sell in a Bertrand equilibrium. What is market price and what are firms' profits?