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Q2 and Q3 help Question 2 Double margins in Cournot. [20 points] Consider two retailers that are engaged in quatity competition (cournot). They have the

Q2 and Q3 help

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Question 2 Double margins in Cournot. [20 points] Consider two retailers that are engaged in quatity competition (cournot). They have the same marginal cost given by the wholesale price which is denoted p\". Inverse demand is given by p = aq. Assume p\" 2 and or > 2. 3. Would RL ever want to set the price greater than 19*? explain. 4. Given this1 how much prot does RL make if she engages in service? How much if she doe-3 not? 5. Would RL want to engage in service? 6. Is the upstream monopolist better off with exclusive territories? Why

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