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Each consumer is prepared to pay back at most $mathrm v =35 €$ for the cake and he/she wishes to obtain at most just one unit. Each and every consumer bears a disutility in consuming a product that does not have strictly most popular properties. Assume that this disutility equals $t=two$ for every unit of distance. The marginal expenses of The 2 firms are equal $c_ B C =c_ E C =12$. Corporations BC and EC contend by picking out rates. Suppose that firm BC has chose to deliver with very little sweetness, though EC has incredibly sweet.