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Outsourcing and Vertical Integration in a Competitive Industry

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Figure

Figure 1a: The Market When Upstream Fixed Costs are Very High
Figure 2a: Equilibrium Outputs of the Vertically Integrated FirmCase I: FU+FD+2(FUFD)1/2<2FI and 2FU>FI
Figure 3: Outsourcing
Figure 4b: Equilibrium Market Strucures (II)
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