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Suppose that two firms compete in a market where consumers have identical preferences. The benefits and costs of the two firms are B1, C1 and

Suppose that two firms compete in a market where consumers have identical preferences. The benefits and costs of the two firms are B1, C1 and B2, C2, respectively, where B1 - C1 > B2 - C2. What price should firm 1 set so that it can capture the entire market and maximize profits?

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