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In Italy you will discover 4 main gasoline producers: Eno, Q7, Etto and Tamul (selection these firms from one to four). Assume the four corporations produce a homogeneous solution, and they may have equivalent total Price features equal to:
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Each consumer is prepared to fork out at most $mathrm v =35 €$ for just a cake and he/she wishes to acquire at most one device. Every single consumer bears a disutility in consuming a product that doesn't have strictly desired traits. Think that this disutility equals $t=two$ per unit of distance. The marginal costs of the two firms are equivalent $c_ B C =c_ E C =twelve$. Firms BC and EC contend by selecting price ranges. Suppose that agency BC has made a decision to generate with little sweetness, even though EC has really sweet.
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