Use the following selected information from Whitman Corp. to determine the Year 1 and Year 2 trend percentages for net sales using Year 1 as the base. Year 2Year 1Net sales$276,200 $231,400 Cost of goods sold 151,900 129,590 Operating expenses 55,240 53,240 Net earnings 27,820 19,820 Multiple Choice55.0% for Year 2 and 56.0% for Year 1.36.4% for Year 2 and 41.1% for Year 1.117.2% for Year 2 and 100.0% for Year 1.119.4% for Year 2 and 100.0% for Year 1.65.1% for Year 2 and 64.6% for Year 1.

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?