Image transcription text (1) Von-Thnen Model | A coffee shop is located at M (where x=0) and

Image transcription text

(1) Von-Thflnen Model | A coffee shop is located at M (where x=0) and charges marginal cost prices for its coffer (i.e., c=p}. Customers walk to the coffee shop to buy coffee and, aside from the purchase price, incur travel cost of (txZJ, measured from the shop. The shop's market reach is 2.3 km and t=2. If customersr WTP for the shop's coffee is $12.83 what is the product's price in equilibrium?

Transcribed Image Text:

(1) Von-Thnen Model I A coffee shop is located at M (where x=0) and charges marginal cost prices for its coffee (i.e., c-p). Customers walk to the coffee shop to buy coffee and, aside from the purchase price, incur travel cost of (tx), measured from the shop. The shop's market reach is 2.3 km and t=2. If customers' WTP for the shop's coffee is $12.83 what is the product's price in equilibrium? (1) Von-Thnen Model I A coffee shop is located at M (where x=0) and charges marginal cost prices for its coffee (i.e., c-p). Customers walk to the coffee shop to buy coffee and, aside from the purchase price, incur travel cost of (tx), measured from the shop. The shop's market reach is 2.3 km and t=2. If customers' WTP for the shop's coffee is $12.83 what is the product's price in equilibrium?