The beach in Asbury Park is roughly 3 miles long. Each day there are 1000 people spread uniformly across the beach. On each end of the beach there is a hoagie shop. People travel up and down the beach at a constant cost of $1 per mile. People buy the hoagie from the shop offering the lowest price, which has two components for each individual: 1) the price paid to the shop owner and 2) the travel cost of getting to the store. Soumya owns the shop at the North end of the beach and sells hoagies at the price p1 per sandwich. Snigdha owns the shop at the South end of the beach and sells hoagies at the price of p2 per sandwich. The marginal cost of a sandwich is $1. In addition, each shop pays the city of Asbury Park $25 per day for the right to sell hoagies. Soumya and Snigdha choose their prices simultaneously.

Indira is attracted by the profits that Soumya and Snigdha and opens shop at the midpoint of the beach. Her costs are the same as Soumya and Snigdha.

3. Snigdha decides to acquire either Indira or Soumya's shop. Which of the two would be the best target for acquisition? What are the new profits for Snigdha and the remaining competitor after the acquisition