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Two firms engage in simultaneous quantity competition in a market whose demand isgiven by P(Q) = 24 (q1 + q2). Firm 1 has 0 MC.
Two firms engage in simultaneous quantity competition in a market whose demand isgiven by P(Q) = 24 (q1 + q2). Firm 1 has 0 MC. Firm 2 has MC that depends on whether it is a good year or a bad year. If it is a good year Firm 2 also has 0 MC. If it is a bad year, then firm 2 has constant MC = 3 for every unit. The probability of a good year is 1/2
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International Economics
Authors: Dominick Salvatore
11th edition
978-1118177938, 1118177932, 1119915732, 978-1118476017, 1118476018, 978-1119915737
