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Just about every consumer is ready to pay at most $mathrm v =35 €$ for the cake and he/she needs to purchase at most a single unit. Each individual consumer bears a disutility in consuming an item that doesn't have strictly desired traits. Think this disutility equals $t=2$ for each device of distance. The marginal expenses of the two companies are equal $c_ B C =c_ E Unlock info C =twelve$. Corporations BC and EC compete by deciding upon selling prices. Suppose that firm BC has made a decision to produce with very little sweetness, though EC has quite sweet.
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