Suppose a duopoly in a market for a differentiated good. The demands and costs of the two companies, A and B, are given by:
Qa = 200 - 2Pa + Pb
Qb 2002Pb + Pa
CTa = 550 + 46 Qa
CTb = 550 + 46 Qb
Assuming that the two companies choose their price (Bertrand model), what quantity will be produced by firm A?
