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two firms compete over quantities. inverse demand is given by P=60-3Q where Q=Q_1+Q_2. At first both firms have the same MC=12. The game has two

two firms compete over quantities. inverse demand is given by P=60-3Q

where Q=Q_1+Q_2. At first both firms have the same MC=12. The game has two stages. in the first one, only firm 1 can lower its MC by K1 by investng 4ksquare in R&D, in the second stage both firms compete over quantities

Solve the second stage equilibrium quantities and price as a function of k1

what is firm one optimal k1

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