Suppose that two identical firms produce widgets

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Suppose that two identical firms produce widgets and that they are the only firms in the market. Their costs are given by C1=10Q1 and C2=10Q2, where Q1 is the output of Firm 1 and Q2 the output of Firm 2. Price is determined by the following demand curve: P = 70 - 0.5Q where Q = Q1 + Q2. what are the strictly dominant strategies/quantities for firm 1? How do you solve this using IEDS ( strategies eliminated in the first 4 steps)

Reference no: EM131171085

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