Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

تمرين 16

Two firms compete in a Cournot fashion. Firm 1 successfully engages in an activity that raises its rival's marginal cost of production.
a. Provide two examples of activities that might raise rivals' marginal costs.
b. In order for such strategies to be beneficial, is it necessary for the manager of firm 1 to enjoy hurting the rival? Explain.