The diagram below that accompanies this question illustrates curves for a firm operating in a differentiated-product oligopoly. One of the demand curves is relevant when rivals match the firm’s price changes; the other demand curve is relevant when rivals do not match price changes. CREAR MR-B 45 80 20 62 Marginal Cast Demand A MR-A Demand B uf Quantity Suppose the manager believes that rivals will match price cuts and will also match a price increase. What is the profit maximizing quantity?
