Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

تمرين 22

Suppose a firm is considering investing in research that would lead to a cost-saving innovation. Assuming the firm can retain this innovation solely for its own use, will the additional profits from the lower (marginal) cost be greater if the firm is a monopolist or competes against another, say, in a Cournot or Bertrand model?