This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
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....
View Full Document
- Fall '10