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Every single consumer is prepared to spend at most $mathrm v =35 €$ for any cake and See full details he/she wishes to obtain at most just one unit. Each individual consumer bears a disutility in consuming a Unlock info product that does not have strictly chosen characteristics. Suppose that this disutility equals $t=two$ per device of distance. The marginal costs of the two corporations are equal $c_ B C =c_ E C =twelve$. Companies BC and EC compete by selecting charges. Suppose that firm BC has chose to deliver with little sweetness, while EC has incredibly sweet.
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