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Suppose there are only two firms supplying in the market and they produce a homo
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【題目】 Suppose there are only two firms supplying in the market and they produce a homogeneous good. Two firms produce the good with the same constant marginal cost. Firms compete by setting price simultaneously . The equilibrium price of both firms must
equal to the marginal cost times the markup.
be greater than the marginal cost but smaller than the marginal cost times the markup.
equal to the average cost.
equal to the marginal cost.
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