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You Are the Manager of a Firm Operating in a Differentiated-Product

question 19

Essay

You are the manager of a firm operating in a differentiated-product oligopoly.Show graphically your optimal response to an increase in marginal cost if
a.You believe rivals will follow price reductions but not price increases.
b.You believe rivals will hold output constant if you decrease output.
c.You believe rivals will follow price increases but not price decreases.


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