Suppose 100 consumers are evenly distributed along a one-mile boardwalk (z) as below:

All consumers share a valuation of $50 and (there and back) transport costs of $30/mile.Assuming the whole market is currently served with three shops, what is the equilibrium price charged to consumers?

Select one:

a.

50

b.

45

c.

30

d.

35

Clear my choice

Suppose 100 consumers are evenly distributed along a one-mile boardwalk (2) as below Price Price 14 50 V- 50 P P 1/6 1/2 5/6 Shop 1 Shop 2 Shop 3 All consumers share a valuation of $50 and (there and back) transport costs of $30/mile. Assuming the whole market is currently served with three shops, what is the equilibrium price charged to consumers