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Consider an economy with the interest rate at r = 0.25 and no growth rate. The...

Consider an economy with the interest rate at r = 0.25 and no growth rate. The market where firms compete is very volatile and there is a high probability h = 0.2 that the industry collapse. Would the firms accept a collusive agreement to set monopoly price and share equally the market if I = {1, 2}?

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Rahul Sunny answered 11 months ago
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