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A market is initally served by a monopoly firm 'A' with demand given by Q=400-P, and marginal costs given by MC=100. Find the monopoly price and quantitty. Now, a new firm 'B' enters the market, and takes A's initial output as given. Find A's profit maximizing price and quantity under this assumption. Have B respond to the new entrant under the same assumption that A's output is given. Repeat this process for three additional iterations.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91235487

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