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Suppose two firms sell an homogeneous product; they compete in prices. Their respective marginal costs are MC1 (q) = 10 and MC2 (q) = 20. Find the prices that form equilibrium (for simplicity and reality, assume that prices are quoted in units no smaller than cents). Derive the best response functions and plot them carefully.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91421571

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