dam and Zoey are competing fish and chips sellers in Linear City. They are located at the two opposing ends of the town’s 3-mile-long Main Street. The 1700 inhabitants of the town are distributed uniformly on Main Street and each of them eats at most one portion of fish and chips for lunch. People’s disutility from getting to a fish and chips stand and back home amounts to $2 for each mile of distance to the stand. The marginal cost of producing one portion of fish and chips is $9. The consumers are uniformly distributed along the street. Each consumer has a valuation of $29.0 for the product. Suppose that both Zoey and Adam can advertise at zero cost to inform everyone about their business. Find the equilibrium price of Zoey if neither of the two sellers advertises.
A6.
1.Adam and Zoey are competing fish and chips sellers in Linear City. They are located at the two
opposing ends of the town’s 3-mile-long Main Street. The 1700 inhabitants of the town are distributed
uniformly on Main Street and each of them eats at most one portion of fish and chips for lunch. People’s
disutility from getting to a fish and chips stand and back home amounts to $2 for each mile of distance
to the stand. The marginal cost of producing one portion of fish and chips is $9. The consumers are
uniformly distributed along the street. Each consumer has a valuation of $29.0 for the product. Suppose
that both Zoey and Adam can advertise at zero cost to inform everyone about their business. Find the
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