At a busy intersection on Route 309 in Quakertown, Pennsylvania, the convenience store and gasoline station, Wawa, competes with the service and gasoline station, Fred's Sunoco. In the Nash-Bertrand equilibrium with product differentiation competition for gasoline sales, the demand for Wawa's gas is qw=740-400pw + 400ps and the demand for Fred's gas is as = 740-400ps + 400pw. Assume that the marginal cost of each gallon of gasoline is m = $6. The gasoline retailers simultaneously set their prices. What is the Bertrand-Nash equilibrium? The Bertrand-Nash equilibrium is where pw = $ 7.85 and Ps =$7.85. (Enter your responses rounded to two decimal places.) Suppose that for each gallon of gasoline sold, Wawa earns a profit of $1.00 from its sale of salty snacks to its gasoline customers. Fred sells no products that are related to the consumption of his gasoline. What is the Nash equilibrium? The Bertrand-Nash equilibrium is where Pw = $ and Ps = $ (Enter your responses rounded to two decimal places.) Please do fast ASAP fast
At a busy intersection on Route 309 in Quakertown, Pennsylvania, the convenience store and gasoline station, Wawa, competes with the service and gasoline station, Fred's Sunoco. In the Nash-Bertrand equilibrium with product differentiation competition for gasoline sales, the demand for Wawa's gas is qw=740-400pw + 400ps and the demand for Fred's gas is as = 740-400ps + 400pw. Assume that the marginal cost of each gallon of gasoline is m = $6. The gasoline retailers simultaneously set their prices. What is the Bertrand-Nash equilibrium? The Bertrand-Nash equilibrium is where pw = $ 7.85 and Ps =$7.85. (Enter your responses rounded to two decimal places.) Suppose that for each gallon of gasoline sold, Wawa earns a profit of $1.00 from its sale of salty snacks to its gasoline customers. Fred sells no products that are related to the consumption of his gasoline. What is the Nash equilibrium? The Bertrand-Nash equilibrium is where Pw = $ and Ps = $ (Enter your responses rounded to two decimal places.) Please do fast ASAP fast
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter13: best-practice Tactics: Game Theory
Section: Chapter Questions
Problem 1E
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At a busy intersection on Route 309 in Quakertown, Pennsylvania, the convenience store and gasoline station, Wawa, competes with the service and gasoline station, Fred's Sunoco. In the Nash-Bertrand equilibrium with product differentiation competition for gasoline sales, the demand for Wawa's gas is
qw=740-400pw + 400ps
and the demand for Fred's gas is
as = 740-400ps + 400pw.
Assume that the marginal cost of each gallon of gasoline is m = $6. The gasoline retailers simultaneously set their prices.
What is the Bertrand-Nash equilibrium?
The Bertrand-Nash equilibrium is where pw = $ 7.85 and Ps =$7.85. (Enter your responses rounded to two decimal places.)
Suppose that for each gallon of gasoline sold, Wawa earns a profit of $1.00 from its sale of salty snacks to its gasoline customers. Fred sells no products that are related to the consumption of his gasoline. What is the Nash equilibrium?
The Bertrand-Nash equilibrium is where Pw = $ and Ps = $ (Enter your responses rounded to two decimal places.)
Please do fast ASAP fast
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