Firms 1 and 2 compete in a Cournot duopoly.If firm 2 adopts a strategy that raises firm 1's marginal cost:
A) Firm 1 will increase its output.
B) Firm 2 will gain market share.
C) Firm 2 will enjoy lower profits.
D) All of the statements associated with this question are correct.
Correct Answer:
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