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distributed along the linear street. Consumers will buy exactly one unit of the product as long as the price paid and other costs are lower than the value derived from consuming the product (V). Consumer incur transaction cost 2d where d is the distance travelled. Suppose there are two firms and the marginal cost of production is 5. There are 2 firms. (i) Find the location of the indifferent customer is price charged by firm 1 is P1 and price charged by firm 2 is P2. (ii) Find the demand functions for the two firms. (iii) Find the best response functions of each firm. (iv)

distributed along the linear street. Consumers will buy exactly one unit of the product as long as the price paid and other costs are lower than the value derived from consuming the product (V). Consumer incur transaction cost 2d where d is the distance travelled. Suppose there are two firms and the marginal cost of production is 5. There are 2 firms. (i) Find the location of the indifferent customer is price charged by firm 1 is P1 and price charged by firm 2 is P2. (ii) Find the demand functions for the two firms. (iii) Find the best response functions of each firm. (iv)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Suppose there are N customers who are distributed along the linear street. Consumers will buy exactly one unit of the product as long as the price paid and other costs are lower than the value derived from consuming the product (V). Consumer incur transaction cost 2d where d is the distance travelled. Suppose there are two firms and the marginal cost of production is 5. There are 2 firms. (i) Find the location of the indifferent customer is price charged by firm 1 is P1 and price charged by firm 2 is P2. (ii) Find the demand functions for the two firms. (iii) Find the best response functions of each firm. (iv) What is the Bertrand Nash equilibrium? (v) Also find the aggregate profit of the market
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