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There are only 2 firms in a market facing same demand curve as follows: Q = 120 – 10P The marginal cost of each firm are, respectively, MC1 = 4 + 0.2 Q1 and MC2 = 4 + 0.2 Q2 a). Find the profit maximization level of output for both firms. b). which firm is more vulnerable in case of aggressive price war between these two firms? Why?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91696118

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