I want typed answer in steps only and summary of answer at the end otherwise downvote. Suppose Firm A and Firm B provide similar good and are located near each other. Under hotelling assumptions what price will the firms charge?a.The firm will charge the same priceb. The firm will charge the highest price possible as determined by the market demand for the goodc. p*=MC for both firmsd. p*=MC=T for both firms where T represents the amount of product differentiation between the two goods

Another case of multiple alternatives in Q 15 is where there is a fixed horizon and the alternative may not have lives that match that horizon. Consider the case where alternative X has a 6-year life and alternative Y has a 4-year life. You need the capability for 6 years. MARR is 10%. To compare these two cases, use a 6 year horizon and plan on replacing Y at the end of 4 years. However, since the replacement Y will be used for only 2 years, it is necessary to also know the 2- year salvage value for Y. The data for the two alternatives are as follows (just including initial cost and salvage values: Alternative X Alternative Y Initial cost $15,000 $22,000 Life 4 years 6 years Salvage Value at Life $2,000 $1,000 Salvage value at 2 years $4,000 N/A