Firms enter sequentially and incur a startup cost of 16


Consumers' preferences are uniformly distributed on the unit interval. Prices are fixed such that ( p - c) = 1 and the number of consumers has been normalized to one. Firms enter sequentially and incur a startup cost of 1/6. Suppose that startup costs are not sunk-firms can costlessly
relocate. What is the free-entry number and location of firms?

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Microeconomics: Firms enter sequentially and incur a startup cost of 16
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