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Each consumer is ready to pay out at most $mathrm v =35 €$ for any cake and he/she wishes to get at most a person device. Each individual consumer bears a disutility in consuming a product that doesn't have strictly favored traits. Think this disutility equals $t=2$ for each device of distance. The marginal fees of the two corporations are equal $c_ B C =c_ E C =twelve$. Companies BC and EC compete by choosing prices. Suppose that agency BC has chose to develop with little sweetness, when EC has pretty sweet.