Figure 2: Investment decision xi(c) of flrm i.
i.e. for given (qi(x; );xi(c)), if c0i occurs, then flrm i will produce at … of flrms’ investment decision
X⁄M(c) under joint proflt maximization.
Theorem 2 (Monopoly Solution) Under proflt … investment level
xi(c) forc 2 [c0;c00] but not by the investment decision in other technologies c < c0 or c > c00.
Veriflcation …