In the Hotelling Model,what Effect Would an Increase in the Transportation

Multiple Choice

In the Hotelling model,what effect would an increase in the transportation cost t have on,in the first instance,a monopoly firm and,in the second instance,two firms located at the extremes of the line segment who compete over the marginal consumer?

A) The monopolist's profit would decrease but the duopolists' would increase.
B) Both monopolist's and duopolists' profits would increase.
C) Both monopolist's and duopolists' profits would decrease.
D) The monopolist's profit would increase but the duopolists' would decrease.