==+where Q = Q1 + Q2. Until recently, both firms had zero marginal costs. Recent environmental regulations

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==+where Q = Q1 + Q2. Until recently, both firms had zero marginal costs. Recent environmental regulations have increased Firm 2’s marginal cost to $15. Firm 1’s marginal cost remains constant at zero. True or false: As a result, the market price will rise to the monopoly level.

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Microeconomics

ISBN: 9780134184241

9th Edition

Authors: Robert Pindyck, Daniel Rubinfeld

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