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Kusaat Model Question  Form

Kusaat Model Question Form

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Instructions and help about Kusaat Model Question

in this video we're gonna look at spatial competition in particular this circular City or the salad model so there are four identical firms symmetrically located around a circular Street Soviet firm a from B from C from D all equal distance from one another this Street contains 160 uniformly distributed households so there's 160 households around this circle each firm is 40 houses away from the next firm so the distance between a and B is 40 households between a and D 40 households and so on all four firms produce pizza at a marginal cost of $10 and each household demands one pizza per week customers incur transportation costs to buy pizza which equals one dollar for every house passed on the way to buy pizza we want to determine the equilibrium price of Pizza so a customer who's located between firm a and B so where this smiley face says here's a customer located between a and B will be indifferent between buying pizza from either firm if the following

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