The demand at Firm 2 is given byA) a + 1 + b − a 2 \frac { 1 + b - a } { 2 } 2 1 + b − a B) a + 1 − b − a 2 \frac { 1 - b - a } { 2 } 2 1 − b − a C) 1 + b − a 2 \frac { 1 + b - a } { 2 } 2 1 + b − a D) 1 − b + a 2 \frac { 1 - b + a } { 2 } 2 1 − b + a

Question

The demand at Firm 2 is given byA) a +   1 + b − a 2 \frac { 1 + b - a } { 2 } 2 1 + b − a ​ B) a +   1 − b − a 2 \frac { 1 - b - a } { 2 } 2 1 − b − a ​ C)    1 + b − a 2 \frac { 1 + b - a } { 2 } 2 1 + b − a ​ D)    1 − b + a 2 \frac { 1 - b + a } { 2 } 2 1 − b + a ​

Jasmine B Pearson · Accepted Answer

Final Answer : C, Explanation :  Since customers have no preference other than minimizing distance travelled, the demand at point x is proportional to the distance to the nearest firm. Therefore, the demand at Firm 1 is a + (1-a-b)/2 and the demand at Firm 2 is (1-a-b)/2 + b = (1+a-b)/2. Solving for the demand at Firm 2, we get (1+a-b)/2, which is choice C.

The demand at Firm 2 is given by

A) a + $1+b−a2\frac { 1 + b - a } { 2 }$
B) a + $1−b−a2\frac { 1 - b - a } { 2 }$
C) $1+b−a2\frac { 1 + b - a } { 2 }$
D) $1−b+a2\frac { 1 - b + a } { 2 }$

Definitions

Learning Objectives

Learning Objectives

Related questions

The demand at Firm 2 is given byA) a + 1+b−a2\frac { 1 + b - a } { 2 }21+b−a​ B) a + 1−b−a2\frac { 1 - b - a } { 2 }21−b−a​ C) 1+b−a2\frac { 1 + b - a } { 2 }21+b−a​ D) 1−b+a2\frac { 1 - b + a } { 2 }21−b+a​

Definitions

Learning Objectives

Learning Objectives

Related questions

The demand at Firm 2 is given by

A) a + $1+b−a2\frac { 1 + b - a } { 2 }$
B) a + $1−b−a2\frac { 1 - b - a } { 2 }$
C) $1+b−a2\frac { 1 + b - a } { 2 }$
D) $1−b+a2\frac { 1 - b + a } { 2 }$