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Consider a market of two (2) firms that produce the same thing. Market demand is P = 250 - Q and the marginal costs of
Consider a market of two (2) firms that produce the same thing. Market demand is P = 250 - Q and the marginal costs of production are $10 for Firm 1 and $20 for Firm 2. If firms compete through production, what will be the expected firm quantities?
Firm 1 = 80 units, Firm 2 = 76.7 units
Firm 1 = 83.3 units, Firm 2 = 73.3 units
Firm 1 = 73.3 units, Firm 2 = 83.3 units
Firm 1 = 83.3 units, Firm 2 = 93.3 units
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