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Question: Cluster Size and Efficiency Consider an industry subject to agglomeration economies. The profit per firm is $120 for an isolated firm and increases to the maximum of $180 per firm in a 7-firm cluster. The profit curve is linear, with a slope of +$10 per firm along the positively sloped portion and $15 per firm along the negatively sloped portion. Illustrate the determination of the Nash equilibrium, including values for the number of firms and profit per firm.
Normal 0 false false false EN-US X-NONE X-NONE A quality control engineer ..
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