Consider two firms who choose what quantity to produce, where one firm chooses before the...
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Finance
Consider two firms who choose what quantity to produce, where one firm chooses before the other (and the second observes the choice of the first). They can produce either 0,7.5,10 or 15 units of a good, and face a cost of C(Q)=10Q Market demand follows P(Q)=1003Q In the subgame perfect Nash equilibrium of this game: The first firm produces The second firm produces The equilibrium price is
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