Question
Consider an industry with two firms, each producing an identical product. Total cost functions for the firms are given by TC 1 = 2q 1
Consider an industry with two firms, each producing an identical product. Total cost functions for the firms are given by TC1= 2q1and TC2= 14q2. Demand for the product is given by P= 50 - (q1+q2).
Why is market definition an important step in the outcome of antitrust cases? Should it be this important?
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Intermediate Microeconomics
Authors: Hal R. Varian
9th edition
978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968
