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Business, 02.08.2019 19:30 2308046

There are two existing firms in the market for computer chips. firm a knows how to reduce the production costs for the chip and is considering whether to adopt the innovation or not. innovation incurs a fixed setup cost of c, while increasing the revenue. however, once the new technology is adopted, another firm, b, can adopt it with a smaller setup cost of c/2. if a innovates and b does not, a earns $20 in revenue while b earns $0. if a innovates and b does likewise, both firms earn $15 in revenue. if neither firm innovates, both earn $5. under what condition will firm a innovate

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There are two existing firms in the market for computer chips. firm a knows how to reduce the produc...

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