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The city of Econville has three bookstores on the Main Circle that is 1 mile long. The bookstores have no costs. The distance between any two neighboring stores is the same and equal to 1/3 miles. There are 100 residents uniformly located along the Main Circle. Each resident rents one book per day provided that the price charged is no more than $5. If a consumer is located s miles from a store the transportation costs in getting a book from that store is $.50s. What price will the three stores set given they act as price competitors? What profits do they earn?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92196925

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