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See below photo for question, thanks! Q6 Consider an industry with only two firms. The industry demand curve is given by: Q = 200 -

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See below photo for question, thanks! Q6

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Consider an industry with only two firms. The industry demand curve is given by: Q = 200 - 2P Suppose that the firms have identical marginal and average costs of $10 and pro- duce identical products. There are no fixed costs of production. 10 marks Suppose Firm 1 makes its optimal output decision before Firm 2. Find the equilibrium price P and industry output Q. Determine the profits for each firm in the equilibrium. Is there a first-mover advantage in this market? Please show your work

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