William skebba was a top sales executive for m. w. kasch co. the company was failing financially, and skebba received another job offer. jeffrey kasch, one of the owners of the company, persuaded skebba not to take the job and agreed to pay skebba $250,000 if the company were sold while skebba was still employed there. though skebba repeatedly asked for a written memorialization of the agreement, kasch never pro-vided one. the company was sold for $5.1 million; however, kasch refused to pay skebba the promised amount, denying ever having made the agreement. assuming that there is no enforceable contract here, can skebba recover by claiming promissory estoppel? what would be his recovery?

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?