You work for Southern California Edison and the police departments of several cities require your support to identify potential venues growing marihuana. It seems that clandestine sites that produce this plant use 500% above the energy average use. The CEO of SCE asked you to prepare a report to be handle to the different police departments to enforce the law regarding producing marihuana in California. You decide that you will use the data science cycle to prepare your report. So for each one of the steps, you will describe how you will prepare your report. You are very motivated by the fact that the CEO select you to prepare SCE report.

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?