Question: 3. Two coffee shops are located on a street, between its west end and its east end. Many people live all along the street, and

3. Two coffee shops are located on a street, between its

3. Two coffee shops are located on a street, between its west end and its east end. Many people live all along the street, and they must travel to one of the coffee shops in order to wake up and face a new day. Both firms serve identical goods. Travel is costly; the longer the travel, the costlier the travel is. The diagram below illustrates the locations of the two coffee shops, Latte King and Moondollars. Latte e King Moondollars a. West Last Each Frl Fnd firm has the same costs and charges the same price (which is larger than the average cost). Which firm has bigger profits? Explain, using the diagram. b. Suppose both firms take the market price as given and can't change it. How does Moondollars want to adjust its location in order to get a larger market share

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