4 Use a diagram with reaction functions as in Figure 5.8 when actions are strategic substitutes. Notice

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4 Use a diagram with reaction functions as in Figure 5.8 when actions are strategic substitutes. Notice that when firm 1’s strategy s1 is on the horizontal axis, its reaction function R1 is steeper than firm 2’s reaction function R2. Identify the Nash equilibrium and label it N, and label firm 1’s (firm 2’s) Nash equilibrium strategy as

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