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Homogeneous products, price competition, simultaneous moves, two firms Consider a market with the following (inverse) demand curve is: p = 40 - q where q

Homogeneous products, price competition, simultaneous moves, two firms

Consider a market with the following (inverse) demand curve is: p = 40 - q where q is total industry output

Assume the industry has TWO firms with the following marginal costs of production and no fixed costs:

MC1 = c1= 4

MC2=c2= 10

Write down the best response functions.

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