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Each consumer is willing to pay out at most $mathrm v =35 €$ for any cake and he/she needs to Business Studies guidance get at most one particular unit. Each consumer bears a disutility in consuming a product that doesn't have strictly most well-liked features. Suppose that this disutility equals $t=2$ per unit of distance. The marginal fees of The 2 companies are equal $c_ B C =c_ E C =12$. Firms BC and EC contend by selecting costs. Suppose that organization BC has made a decision to develop with minimal sweetness, although EC has really sweet.

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