ID HOTELLING'S MODEL In what follows assume that a consumer buys at most one product, his/her reservation price - co, mill price is 1, trans- portation cost is $1 per unit travelled and production cost is sunk unless otherwise stated. ID.I Consider a Hotelling's model with consumers distributed ac- cording to 2x if x E [0, 2 v 2] f (x ) = 0 otherwise. 1. If there is one vendor, where should he be to minimize the total transportation cost? 2. Find the Nash equilibrium when there are two vendors