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Assume that we have a game with 2 firms where firm 1 chooses his quantity first and firm 2 chooses his quantity after observing the
Assume that we have a game with 2 firms where firm 1 chooses his quantity first and firm 2 chooses his quantity after observing the choice of firm 1. The inverse demand in this market is represented by P = A bQ and the marginal cost cost of firm 1 is C1 while the marginal cost of firm 2 is C2. Calculate the equilibrium in this game.
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