Question
Consider Cournot competition with asymmetric costs. Can you draw response curves for which production equilibrium production by firm 1 is so large that firm 2
Consider Cournot competition with asymmetric costs. Can you draw response curves for which production equilibrium production by firm 1 is so large that firm 2 decides not to produce? Explain intuitively what is required of the two firms' costs for firm 2 not to produce.
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Managing in a Global Economy Demystifying International Macroeconomics
Authors: John E. Marthinsen
2nd edition
128505542X, 978-1305176157, 1305176154, 978-1285055428
