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. Suppose there are two firms competing in the market for degree frames for which the inverse demand function can be written as P =
.
Suppose there are two firms competing in the market for degree frames for which the inverse
demand function can be written as P = 100 -Q. Firm one has the cost function C(Q1) = Q1^2 and firm two has the cost function C(Q2) = 2Q
Without performing any calculations, which firm do you expect to produce more? Why?
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