Case 1: Firms first make entry decisions. All firms in the market then choose output simultaneously. Let ne > 0 be the number of firms in this free entry Cournot equilibrium. Case 2: The social planner chooses the number of firms n > 0 to maximise the total surplus. All firms in the market then choose output simultaneously. Which of the following statements is correct? Question 10 Answer a. There is not enough information to compare firms' profits in the two cases. b. Each firm in the market has a higher profit in Case 1 than in Case 2. c. Each firm in the market has a higher profit in Case 2 than in Case 1