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In the initial Cournot oligopoly equilibrium, both firms have constant marginal costs, m, and no fixed costs, and there is a barrier to entry. Determine what happens to the best-response function of firms if both firms now face a fixed cost of F..

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In the initial Cournot oligopoly equilibrium, both firms have constant marginal costs, m, and no fixed costs, and there is a barrier to entry. Determine what happens to the best-response function of firms if both firms now face a fixed cost of F.

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In the initial Cournot oligopoly equilibrium both firms hav.pdf

  • 1. In the initial Cournot oligopoly equilibrium, both firms have constant marginal costs, m, and no fixed costs, and there is a barrier to entry. Determine what happens to the best-response function of firms if both firms now face a fixed cost of F.