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Give the assumptions of the Hotelling linear or 'main street' model. If a linear market is 10 kilometers long, there are
Posted: Thu May 26, 2022 7:47 am
by answerhappygod
- Give The Assumptions Of The Hotelling Linear Or Main Street Model If A Linear Market Is 10 Kilometers Long There Are 1 (59.13 KiB) Viewed 12 times
Give the assumptions of the Hotelling linear or 'main street' model. If a linear market is 10 kilometers long, there are two suppliers, firm A located 2 kilometers from the left end of the market and firm B located 3 kilometers from the right end of the market, and transportation cost t is 1 per unit distance, what are the equilibrium prices and proofs per form? (Assume marginal and average production cost is zero). Draw a graph. illustrating the equilibrium. Show the derivations of your answers.