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4. In the Cournot's duopoly game with linear demand function and costs, suppose the unit costs of the two firms are different (assume 2 <

4. In the Cournot's duopoly game with linear demand function and costs, suppose the unit costs of the two firms are different (assume 2 < 1 < ). Which firm produces more output in the equilibrium? What is the effect of technical change that lowers firm 2's unit cost from the initial level of 1 on the equilibrium outputs, the total output and the price?

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