Further entry into the market is completely blocked
Firms have the same constant marginal costs and no fixed costs
If firm's A's price is below Firm b's, Firm A selles to all buyers and firm B sells to none
If they set the same price , they both supply of the buyer
The Market's demand is Q =a -P
Where Q is the total demand when the lowest price of Firm A and Firm B
In a perfectly competitive market , the equilibrium price is the same as the equilibrium price of the Betrand model of oligopoly with homogenous products.
