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If Steve and Savannah wish to maximize their joint profits: each firm should choose its best response. Savannah should choose a best response, and Steve
If Steve and Savannah wish to maximize their joint profits:
each firm should choose its best response.
Savannah should choose a best response, and Steve should not.
each should consider its specific situation before choosing a strategy, since strategies also entail
costs.
each should choose a strategy other than the best response.
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