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WebBertrand Equilibrium¶. To find the Bertrand equilibrium, let \(c\) be the (constant) marginal cost, \(p_1\) be firm 1’s price level, \(p_2\) be firm 2’s price level, and \(p_m\) be the monopoly price level. Firm 1’s price depends on what it believes firm 2 will set its prices to be. Because consumers always buy at the lowest price and the firm will fulfill any level of … WebThe accompanying table gives cost data for a firm that is selling in a purely competitive market. If the market price for this firm's product is $87, it will produce. 8 units at an economic profit of $130.72. 6 units at a loss of $90. 9 units at an economic profit of zero. 9 units at an economic profit of $281.97. WebIn a perfectly competitive market, a firm can sell whatever quantity of output it wants at the market determined price regardless of the behavior of other firms. Long-run competitive equilibrium in an industry implies that no firm: a. is producing at the output level where price equals long-run average total cost. c. is earning a normal profit. the rv parts house-online store