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Subject : Microeconomic Question :
1. Show how Nash equilibrium can be achieved in the Cournot and Bertrand duopoly settings. Why are Bertrand and Cournot Duopolies so different?
2. Explain how the free-ridership problem in the provision of public goods can be modeled as a prisoners' dilemma game.
3. How can incumbent firms take strategic actions to deter potential entrants? Analyse the credibility of these actions.
Choose anyone of the question
Word count : 2200 words.
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