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(Figure: Firms A and B IV) Two rms are considering whether to expand their production capacity. FlrmA , Flrln B Expand // 5 ' 3

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(Figure: Firms A and B IV) Two rms are considering whether to expand their production capacity. FlrmA , Flrln B Expand // 5 ' 3 ./' .. _/ l-Irln R / \\. x. Expand Don't \\\\ x / expand 10 , +31 .\\ ,6,1I) Dent Ex [I / pan expand /-/ / l in\" B \\._ x. Don't xx _, __ expand r 1 r Which of the following statements is TRUE? 0 The outcome is (10 , 6) or (6 , 10). Q There is no rst-mover advantage. 0 Neither rm expands its production capacity. (9) There is a rst-mover advantage

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