Ben buys a camera from Xenthix which starts malfunctioning, as the camera fell down from his hand and broke its lens. When he opts for an exchange, the customer representative says that an exchange or repair is not possible because the damage is of a physical nature and not covered under warranty. Which of the following consequences, if true, would be an example of consumer-to-consumer electronic commerce?A) Ben sells the camera to Balvinder Singh on Iora. com. B) Ben files an online suit against Xenthix. C) Ben files a complaint on Xenthix's Web site asking for a refund. D) Ben buys another camera from Xenthix's online store. E) Ben sells the camera to the world's largest used camera dealer Koenister. com.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?