Question: In Solved Problem 19.2, show that, if all the other firms were producing a high-quality wallet, it would pay a firm to start producing a

In Solved Problem 19.2, show that, if all the other firms were producing a high-quality wallet, it would pay a firm to start producing a low-quality wallet.

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In Solved Problem 19.2, would any of the firms produce high-quality wallets if the cost of producing a higher-quality wallet is only $11? Explain.

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