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In a bertand oligopoly there are two firms A and B with marginal costs $2 and $4 that produce a homoge- neous good. There is
In a bertand oligopoly there are two firms A and B with marginal costs $2 and $4 that produce a homoge- neous good. There is one consumer willing to pay up to $20 for one good, which she purchases from the lowest-priced seller. If the government imposes regulation that increases each firms' cost by 50% then industry profit (a) decreases by more than 50%. (b) decreases by exactly 50%. (c) decreases, but by less than 50%. (d) increases
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