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Which of the following statements on the Hotelling model is WRONG? A. The minimal differentiation principle holds if firms do not compete in price. B.
Which of the following statements on the Hotelling model is WRONG? A. The minimal differentiation principle holds if firms do not compete in price. B. The maximal differentiation principle holds if firms compete in price and the transportation cost is linear in the distance between a consumer and her chosen firm's location. C. The maximal differentiation principle holds if firms compete in price and the transportation cost is quadratic in the distance between a consumer and her chosen firm's location. D. Firms' equilibrium prices increase in the transportation cost per unit
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