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If two firms compete in prices in the Hotelling model, we have that: The transportation cost increases with the prices. The equilibrium prices increase with

If two firms compete in prices in the Hotelling model, we have that:

  • The transportation cost increases with the prices.
  • The equilibrium prices increase with the transportation cost.
  • The equilibrium prices decrease with the transportation cost.
  • The equilibrium prices are not affected by the transportation costs.

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