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Just about every consumer is ready to spend at most $mathrm v =35 €$ for any cake and he/she needs to obtain at most one particular device. Every single consumer bears a disutility in consuming a product that does not have strictly most popular features. Suppose that this disutility equals $t=two$ per unit of distance. The marginal prices of the two companies are equal $c_ B C =c_ E C =twelve$. Corporations BC and EC contend by choosing costs. Suppose that firm BC has made a decision to develop with minor sweetness, although EC has extremely sweet.