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Suppose that it is only economical in a country for one rm to produce a new product. There are two possibilities: a foreign-owned rm or

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Suppose that it is only economical in a country for one rm to produce a new product. There are two possibilities: a foreign-owned rm or a domestically owned rm. Let the payoffs (in present value) he the following. Domestic Finn Produce Don't Produce Produce -20 F ,-20 D * Firm Don't Produce 0, 100 *billions of dollars Through subsidization, how could the domestic government change the above payoffs to ensure that the domestic rm is the only rm producing the new product

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