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Each and every consumer is prepared to spend at most $mathrm v =35 €$ for just a cake and he/she wishes to obtain at More info most a single unit. Each consumer bears a disutility in consuming a product that does not have strictly most popular attributes. Suppose this disutility equals $t=2$ for each unit of distance. The marginal fees of the two companies are equal $c_ B C =c_ E C =twelve$. Corporations BC and EC contend by picking out rates. Suppose that agency BC has chose to generate with small sweetness, whilst EC has very sweet.