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The graph that accompanies this question illustrates two demand curv.pdf

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The graph that accompanies this question illustrates two demand curves for a firm operating in a differentiated-product oligopoly. Initially, the firm charges a price of $60 and produces 10 units of output. One of the demand curves is relevant when rivals match the firms price changes; the other demand curve is relevant when rivals do not match price changes. Which demand curve is relevant when rivals will match any price change?.

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The graph that accompanies this question illustrates two demand curves for a firm operating in a differentiated-product oligopoly. Initially, the firm charges a price of $60 and produces 10 units of output. One of the demand curves is relevant when rivals match the firms price changes; the other demand curve is relevant when rivals do not match price changes. Which demand curve is relevant when rivals will match any price change?

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  • 1. The graph that accompanies this question illustrates two demand curves for a firm operating in a differentiated-product oligopoly. Initially, the firm charges a price of $60 and produces 10 units of output. One of the demand curves is relevant when rivals match the firms price changes; the other demand curve is relevant when rivals do not match price changes. Which demand curve is relevant when rivals will match any price change?