Q: There are two firms x and y located on a line of distance demand(0-1) at a and b
respectively, the customers are uniformly located on the line, on keeping the fact of splitting of
market, the
demand of firm x will be given by:
a. (a b)/2
b. a (1-b-a)/2
c. (1 b-a)/2
d. a (a-b)/2
A: The answer is: b. a+(1-b-a)/2
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