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Can you please help thanks Consider an industry in which there are two firms producing a homogenous good. Each firm has a fixed capacity of

Can you please help thanks

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Consider an industry in which there are two firms producing a homogenous good. Each firm has a fixed capacity of 7 units. Inverse demand is given by P = 24 - Q. The marginal cost of each firm is equal to zero. Firms compete in prices. When the two firms charge different prices, the irm with the lowest price gets customers first. The firm with the higher price gets residual demand equal to q = 24 - A - P, where A is the amount supplied by the low price firm. You can think Bertrand competition with capacity constraints. Suppose firm 1 charges a price of 20, what is the best response of firm 2

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