Reiko:

Thank you for drawing our attention to that example. On review we note a number of errors and avenues for improvement.

Rather than detail the specific changes we would make to the text and tables we have opted instead to post a "new version" of Example 7.3 in which, now, all errors have been corrected. One key change to note is the precise statement of the rule governing how output is assigned if firms charge the same price: it now reads,
"If both firms' costs are strictly less than the common price, then the market is split evenly between them. Otherwise firm 1 captures the entire market at the common price."

I have attached a copy of the corrected text here and will post another in the Corrections and Errata section under the title "Chapter 7, Example 7.3 New Text"

Thanks again for your help.

Example73.PDF
Corrected Text & Figures for pp. 283-285 (75,003 bytes)