Sam, alfredo, and juan want to start a small u. s. business. juan will fund the venture but wants to limit his liability to his initial investment and has no interest in the daily operations. sam will contribute his full efforts on a daily basis but has limited funds to invest in the business. alfredo will be involved as an active consultant and manager and will also contribute funds. sam and alfredo are willing to accept liability for the firm's debts as they feel they have nothing to lose by doing so. all three individuals will share in the firm's profits and wish to keep the initial organizational costs of the business to a minimum. which form of business entity should these individuals adopt? sole proprietorship. joint stock company. limited partnership. general partnership. corporation. flag this question

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?