Perfect party company contracts with a customer to provide its birthday party? package, including a? cake, balloons, and musical entertainment. in? addition, perfect party will host the event. perfect party offers the musical entertainment only when it also hosts the party. it often sells cakes and balloons separately that it delivers before a party. identify the separate performance obligations in this contract. ? (yes /? no) 1. providing the cake 2. providing the balloons 3. hosting 4. providing musical entertainment 5. providing hosting and musical entertainment 6. providing the cake and hosting 7. providing the cake and balloons 8. providing the cake and musical entertainment 9. providing the balloons and hosting 10. providing the balloons and musical entertainment

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?