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Linear
Assume a linear city ; 1 Auto shop at center of new delhi Road.
Consumers uniformly distributed on the road.
Each interval is [0, 1] between each customer
Cost of Production = (zero)
Transfer costs are c = 1 Rupee per each unit distanceU = B - c - p; B is a constant, c is meters of distanceP is price if meal
a) Assume O < B < 1
Find Number of customer at this Tire shop
Calculate monopoly price and profit
b) Assume B> 1do some calculations
Article - Stability in Competition by Harold Hotelling.
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