Many financial advisors say that it is important to start saving for retirement as early as possible. what is the main reason for this?
a. retirees do not receive further compensation after leaving the workforce, so they must have some other way to pay for their basic needs.
b. savings allow retirees to travel and to participate in the other activities they were not able to enjoy while they were employed.
c. retirees need enough money to support their relatives in the event of medical problems or financial difficulties.
d. social security often does not provide enough money for retirees to be able to afford their accustomed lifestyles.

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?