3 In the circular location model, .a) how does the position of the marginal consumer between any two firms dependon the total number of firms on the market? Explain mathematically andintuitively..b) How does the position of the marginal consumer between any two firms dependon the transportation cost's (linear) parameter "t"? Explain mathematically andintuitively.c) Explain mathematically and intuitively why the circular location model allows usto conceptualize the fact that established firms can release many variants of thesame good to deter entry?.d) Do you think that this conclusion would change, if we allowed firms on thecircular location model to have various degrees of quality and therefore differentproduction costs and prices? Explain mathematically and intuitively how themain results may change? Do the same also, if you believe that the main resultswould not change. .

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Answered: how does the position of the marginal…

how does the position of the marginal consumer between any two firms depend on the total number of firms on the market? Explain mathematically and intuitively...

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 25P

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