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14 Op Suppose that a firm, in a Bertrand duopoly, makes a soft commitment to raise its price. The expected result is that the firm

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14 Op Suppose that a firm, in a Bertrand duopoly, makes a soft commitment to raise its price. The expected result is that the firm experiences a _(i)_.on its profitability in the short term. If the optimal response of the rival is to (ii)_ and the strategic effect is sufficiently large, the net benefit from the commitment will be positive. Which words need to be filled out at (i) and (ii)? O () direct positive effect, (ii) lower its price. (i) direct positive effect, (ii) raise its price also. (i) direct negative effect, (ii) lower its price. O (i) direct negative effect, (ii) raise its price also

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