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In the market for electric cars, firm 1 is a pioneer who invests , in R&D for efficient production Firm 1's total production cost is
In the market for electric cars, firm 1 is a pioneer who invests , in R&D for efficient production Firm 1's total production cost is given by Ci(q) = (10-b)q, +3. The demand for firm 1's electri cars is given by 91 = 20-2p, +p2. On the other hand, firm 2 is a latecomer whose total production cost is given by C2(92) = 1092. The demand for firm 2's electric cars is given by 92 = 20 - 2p2 + PI Assume the two firms compete by setting prices after firm 1 invests kj
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