more_beach_problem

more_beach_problem - Consider Competition among Beach...

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1 1 Consider Competition among Beach Vendors Consider Competition among Beach Vendors Assume that demanders are distributed uniformly along a Individual purchase of ice cream involves two costs - P i the price charged by the i th vendor - Some unit cost c for walking to the vendor Two vendors are Firm A and Firm B, where cones are costless to produce Consider an individual at point E between the two venders, who is indifferent between buyers A and B - To the left of E consumers buy from A - To the right of E consumers buy from B A E B A’s Demand B’s Demand 0 L 2 By construction, L=a+x+y+b, where a is the distance from left to A and b is distance from right to B Find the individual coordinates of x and y that will make the him/her indifferent between A and B x b a L c p p y c p p x cy P cx P A B A B B A - - - + -
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This note was uploaded on 04/20/2010 for the course ECON 101 taught by Professor Buddin during the Spring '08 term at UCLA.

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more_beach_problem - Consider Competition among Beach...

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