Suppose firm 1 and firm 2 each produce the same product, and face a market demand curve by Q=5000-20… Show more Suppose firm 1 and firm 2 each produce the same product, and face a market demand curve by Q=5000-200P. Firm 1 and 2 have the same unit cost of production c=10. (a) Write down each firm’s derived demand functions, profit functions and best response functions. What is the Bertrand-Nash equilibrium outcome? (b) What are the profits of each firm? (c) Is this outcome efficient? • Show less