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Bradley Airport north of Hartford recently opened a new transportation hub next to the terminal to house car rental companies. Suppose Hertz and Avis are
Bradley Airport north of Hartford recently opened a new "transportation hub" next to the terminal to house car rental companies. Suppose Hertz and Avis are planning to open rental locations where they will effectively sell identical goods: rental cars. They will choose their capacities Q1 and Q2 simultaneously, and face the daily rental car demand curve of P= 300 - Q, where Q = Q1 Q2. Consider each of the following scenarios separately
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