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Each consumer is prepared to pay at most $mathrm v =35 €$ for the cake and he/she needs to obtain at most a single unit. Every single consumer bears a disutility in consuming an item Access now that doesn't have strictly chosen properties. Assume that this disutility equals $t=2$ for each unit of distance. The marginal expenses of the two firms are equal $c_ B C =c_ E C =12$. Firms BC and EC compete by deciding on rates. Suppose that business BC has made a decision to produce with minor sweetness, though EC has extremely sweet.
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