Bertrand Oligopoly with Differentiated Products

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  • Опубліковано 1 січ 2025

КОМЕНТАРІ • 2

  • @bindobinod642
    @bindobinod642 3 роки тому

    MR= d(TR)/dq not d(TR)/dp so plz clear my doubt whether ur method is correct this time bcz in such case we have learn to take out best response function using profit function

    • @EcoGamer831
      @EcoGamer831 2 роки тому

      We use dR/dp because we are given the direct demand function, and not the inverse demand function. If we us dR/dq in the problem above, we won't get anything since there will be nothing in terms of q (since everything is in terms of p). Note that we are solving for the price response function, not the output response function since we are looking at a Bertrand Oligopoly case.