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What is the potential outcome of a price war in... - SS2 Economics Price And Quantity Determination Under Duopoly Question

What is the potential outcome of a price war in a duopoly?

A

Both firms earn a higher profit

B

Both firms earn a lower profit

C

One firm earns a higher profit and the other earns a lower profit 

 

D

Both firms earn the same profit as in a Nash equilibrium

correct option: b
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