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Consider a standard Hotelling model of competition with quadratic transportation costs. The consumers are located uniformly along a segment of unit length. There are two firms, A and B , located at the opposite ends of the segment. Each firm has constant marginal costs 4. Each consumer buys at most one unit of product and gets utility 18 . Each consumer incurs travel cost of 5 times the square of traveled distance. Find equilibrium price and profit of firm A when firms set a unform price for th
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