Suppose the inverse market demand equation is P = 80 ¡V 4(QA+QB), where QA is the output of firm A and QB is the output of firm B, and both firms have a constant marginal constant of $4.
(a)Write down the Bertrand equilibrium prices for this market.
(b)Calculate the industry output.
(c)Solve for the Cournot and Stackelberg equilibrium outputs, and compare to the Bertrand equilibrium.