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Consider the market for a new snack food produced by two firms: Taste-tastic and Yumm. Although the snacks are quite similar, Taste-tastic's snacks have a

Consider the market for a new snack food produced by two firms: Taste-tastic and Yumm. Although the snacks are quite similar, Taste-tastic's snacks have a stronger chocolate flavor than Yumm's snacks. To illustrate how each firm chooses a price for its snack, the following graph presents each firm's best-response function.

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