Qtwo dry cleaners are located on a street of length 1

Assignment Help Business Economics

Reference no: EM13353588

Q. Two dry cleaners are located on a street of length 1 [addresses are numbered from 0 to 1]. The marginal costs of dry cleaning are 0 for both firms. Firm 1 is located at .15, while firm 2 is located at .9. Customers are uniformly distributed along the block, as well as each customer purchases 1 unit of dry-cleaning services. The final cost to a consumer is .p^=p+d where p is the cost he pays to the dry cleaning store as well as d is the distance he has to travel to it. Determine the equilibrium costs charged by the two firms, as well as their equilibrium profit levels. If the firms do not make the same profit, verbally describe why this is the case.

Reference no: EM13353588

Questions Cloud

Q1 the government is considering a policy to reduce air : q1. the government is considering a policy to reduce air pollution by restricting the use of dirty fuels by factories.

Q1 which organizational pattern would probably be most : q1. which organizational pattern would probably be most effective for arranging the main points of a speech with the

Q1 a father on the day his son is born wishes to determine : q1. a father on the day his son is born wishes to determine what lump sum amount would have to be paid into an account

Q1 compare and contrast the protection to intellectual : q.1. compare and contrast the protection to intellectual property provided by trade secrets relative to that provided

Qtwo dry cleaners are located on a street of length 1 : q.two dry cleaners are located on a street of length 1 addresses are numbered from 0 to 1. the marginal costs of dry

Q a range of routine maintenance checks are made on : q. a range of routine maintenance checks are made on commercial airplanes prior to each takeoff. a particular

Qbethlehem as well as youngstown two major steel producers : q.bethlehem as well as youngstown two major steel producers accounted for about 21 percent of the national steel market

Q1 the acceleration of gravity on the surface of venus is : q1. the acceleration of gravity on the surface of venus is 8.9ms2. would a ball throw upward on venus return to the

Q 1 explain the roles and responsibilities and potential : q. 1 explain the roles and responsibilities and potential liabilities of airport operators including liability for

User Account

All Pages