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A city has two major league baseball teams, A and B. Demand for each is as...

A city has two major league baseball teams, A and B. Demand for each is as follows:

Qa=10-­2Pa+Pb

Qb=20-­2Pb+Pa

Each team chooses price simultaneously (Bertrand competition with differentiated goods) in order to maximize its profit given that the marginal cost of an extra spectator at each game is zero for both teams.What price does each team charge for a ticket?

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