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Unformatted text preview: Its total revenue and total cost are both equal and of the size OQ1e1P1. Thus extra profits have been competed with. Still this may not be a stable equilibrium solution because individual firms are free to undertake fresh rounds of product differentiation. This may renew the whole process....
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This note was uploaded on 11/26/2011 for the course ECON MICRO ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10