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Suppose we have a market with 2 firms that have identical operating (i.e., variable) costs and...

Suppose we have a market with 2 firms that have identical operating (i.e., variable) costs and the only difference between the two firms is that the first one has the fixed cost whereas the second does not. We should expect the two firms’ output levels to be the same at the Nash-Cornout equilibrium because the solution is symmetrical (the only difference between the duopolists is the fixed cost).

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