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Thank you There are 100 consumers in the suburb Little Italy all of Whom buy either one medium pizza or nothing. Each consumer has a
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There are 100 consumers in the suburb Little Italy all of Whom buy either one medium pizza or nothing. Each consumer has a reservation price of $15. That is, each consumer is willing to pay at most $15 for a medium pizza. There are two pizza stores - A and B - located next to each other. It costs $7 to make a medium pizza. The price of pizza is in whole dollars (e.g., $8, $7, but not $6.99 or $8.50) Let 1% and Pb denote the price charged by stores A and B respectively. For simplicity, assume p,- e {1, 2, ..., 20} for both i = A, B. If p,-Step by Step Solution
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