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Economics Entrepreneurship: Cost Innovation
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University of Michigan Economics of Entrepreneurship Lecture 2b
In this lecture I discuss Bertrand competition, monopoly profit maximization, and distinguish between 'large' and 'small' innovations according to whether the firm is able to set the single-price monopoly price. I then discuss a technology adoption game with the comment that sometimes the old technology is preferred and other times the new technology is preferred!
In this lecture I discuss Bertrand competition, monopoly profit maximization, and distinguish between 'large' and 'small' innovations according to whether the firm is able to set the single-price monopoly price. I then discuss a technology adoption game with the comment that sometimes the old technology is preferred and other times the new technology is preferred!
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