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Question 3 (25%! Provide real world examples of market case where two firms compete in a Cournot fashion. Firm 1 (one) successfully engages in an
Question 3 (25%! Provide real world examples of market case where two firms compete in a Cournot fashion. Firm 1 (one) successfully engages in an activity that raises its rival marginal cost of production a. Provides two example of activities that might raise rivals' marginal costs [20%) b. In order for such strategies to be beneficial, is it necessary for the manager of firm 1 to enjoy hurting the rival? Explain (5%)
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