Consider the Cournot competition outcome of Eqs. (14.12) and (14.13). Analyze the sensitivity of the solution with

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Consider the Cournot competition outcome of Eqs. (14.12) and (14.13).

Analyze the sensitivity of the solution with respect to innovation in production technology, i.e., how a reduction in production cost c¿ for firm i affects equilibrium quantities, price, and profit.

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