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(Solved): A monopolist faces a market demand Q(p)=1500-5p and has cost function C(q)-120q. Suppose that the go ...



A monopolist faces a market demand Q(p)=1500-5p and has cost function C(q)-120q. Suppose that the government intervenes the market and splits the monopolist into two firms with cost functions C(q)=120g and C2(q)=120q. Suppose the newly created firms compete in Bertrand model. In the Bertrand equilibrium, the profit of firm 1 and firm 2 are given by O (27000, 13500) O (18000, 18000) O (0,0) O (20250, 10250) O (18000, 9000)



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