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If the two firms in a duopoly do not collude what level of output do they produce? Explain how each firm would determine its level
If the two firms in a duopoly do not collude what level of output do they produce? Explain how each firm would determine its level of output. Compare the equilibrium price and level of output (for the market as a whole) under duopoly to the perfectly competitive level. Describe the incentives that drive the difference in behaviour under duopoly versus under perfect competition.
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