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Consider two firms producing homogeneous goods. Firm 1 and firm 2 simultaneously set outputs q, and q, . The inverse demand is P =20-3 (q,

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Consider two firms producing homogeneous goods. Firm 1 and firm 2 simultaneously set outputs q, and q, . The inverse demand is P =20-3 (q, + q, ) and both firms have marginal costs of 2. In a Nash equilibrium, the firms produce O a. (q) ,92 ) = (1.5,3) O b . ( 9 ; , 9 ; ) = (3, 1.5 ) O c. (q ) , 92) = (2.2) O d. Each of the other suggestions might occur in a Nash equilibrium

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