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Business, 27.08.2019 23:20 samafeggins2
In the initial cournot duopoly equilibrium, both firms have constant marginal costs, m, and no fixed costs, and there is a barrier to entry. show what happens to thebest-response function of firms if both firms now face a fixed cost of f. let market demand bep=a-−bq, where a and b are positive parameters with 2 firms. let q1 and q2 be the amount produced by firm 1 and firm 2, respectively. assuming it is optimal for the firm one to produce, its best-response function isq1=? ?
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In the initial cournot duopoly equilibrium, both firms have constant marginal costs, m, and no fixed...
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