1. Find all of the equilibrium locations to the Hotelling linear city when there are six firms competing over locations.
2. In Balzac there are only two TV stations. At a certain time, each has the choice of broadcasting a Dinosaur's hockey game or the Royal Canadian Ballet: 70% of the viewers want to watch the hockey game; 30% want to see the ballet. Each would rather have their fingernails removed than watch the alternative program. If both stations show the same program, they split the audience evenly between them. If maximizing profits means maximizing viewing audience, what programs will the two stations broadcast? Is the market equilibrium efficient? Why?
See State of New York v. Kraft, 1995-1 Trade Cases ¶70,911, for the Court's reliance on these factors in reaching a verdict that the proposed acquisition would not likely lead to a substantial lessening of competition.