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5. Return to Main Street in Tuftsville. Now suppose that George would like to open another store at the midpoint of Main Street. He must
5. Return to Main Street in Tuftsville. Now suppose that George would like to open another store at the midpoint of Main Street. He must pay Tuftsville an addional $250 per day to operate this new store. 1. If Ben and Will do not change their prices, what is the best price for George to charge? How much profit would he earn? 2. What do you think would happen if George did open another store in the middle of Main Street? Would Ben and Will have an incentive to change their prices? Their locations? Would one or both leave the market
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