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Table 8.2
-(Table 8.2) Suppose that both firms are producing 100 units of output. If the firms want to increase profit, firm A should produce _____ output and firm B should produce _____ output.

Question

Use the following to answer question:
Table 8.2 
-(Table 8.2) Suppose that both firms are producing 100 units of output. If the firms want to increase profit, firm A should produce _____ output and firm B should produce _____ output.

Quizplus · Accepted Answer

Firm A should produce less output to reduce costs and increase profit, while firm B should produce more output to capture more market share and increase profit.

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