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Suppose that firms are competing by setting quantities (capacity). If one firm is choosing its quantity before the other: Suppose that firms are competing by

Suppose that firms are competing by setting quantities (capacity). If one firm is choosing its quantity before the other: Suppose that firms are competing by setting quantities (capacity). If one firm is choosing its quantity before the other: The reaction functions are upwad sloping The more units one firm produces, the fewer units the other firm will produce. The equilibrium quantities will be at the intersection of the reaction functions

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