Consider a Bertrand game between two firms. The demand for firm 1's product is given by q1 = 100 - 3p1 + 2p2. The demand for firm 2's product is given by q2 100- 3p2 +2p1. In terms of notation, p1 is...

Extracted text: Consider a Bertrand game between two firms. The demand for firm 1's product is given by q1 = 100 - 3p1 + 2p2. The demand for firm 2's product is given by q2 100- 3p2 +2p1. In terms of notation, p1 is the price of firm 1's product and pa is the price of firm 2's product. The two firms choose their prices simultaneously. For your calculations below, assume zero costs and that prices are measured in dollars per unit. Find the equilibrium prices. as b Derive the firms' best-response functions and explain whether the prices are strategic substitutes or complements in this game.