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Two Identical Firms Are Considering Entering a New Market That

Question 60

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Two identical firms are considering entering a new market that currently has no suppliers.The demand is large enough for both firms to make a positive profit.There are no fixed costs to enter.Explain how a simultaneous decision to enter on the part of the two firms will lead to a different outcome than a sequential entry decision.

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If the firms' entry decisions are simult...

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