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Every consumer is ready to pay back at most $mathrm v =35 €$ for a cake and he/she wishes to obtain at most one particular unit. Each individual consumer bears a disutility in consuming an item that does not have strictly chosen characteristics. Assume this disutility equals $t=two$ for each unit of distance. The marginal costs of The 2 corporations are equivalent $c_ B C =c_ E C =twelve$. Firms BC and EC contend by choosing costs. Suppose that agency BC has made a decision to develop with little sweetness, though EC has really sweet.