Firm A is competing in prices with firm B, which sells a somewhat different product. Firm A
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Firm A is competing in prices with firm B, which sells a somewhat different product. Firm A can invest to reduce its costs. Demonstrate with a simple graph how Firm A will underinvest/overinvest [choose one] in cost reduction, compared to the situation in which there would be no strategic effect on firm B's pricing.
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![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/06/66794403e4581_29966794403b7c52.jpg)
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