There are two firms in the linear city of (0-1) locating at 1/4 for firm A and 3/4 for firm B with the same material cost m and unit transportation cost t. Each is taking 50% of the total market share. Explain the strategies of firm A to increase its market share relative to the market share of firm B.
It is all that was given. The theme from book Varians Chap. 26. Factor Markets.