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Business, 05.05.2020 05:04 carolhubble

(8 points) Consider a Hotelling model, similar to the one in class, with travel cost t, consumers located uniformly along interval [0,1], each consumer willing to buy exactly one unit of product, rms producing at marginal costs c. However, instead of locating at the ends of the interval, rms are at points 1 4 and 3 4 . Solve for an indifferent consumer, and rms' equilibrium prices and pro ts.

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(8 points) Consider a Hotelling model, similar to the one in class, with travel cost t, consumers lo...
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