In the Hotelling model of spatial competition,profits arise from:

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In the Hotelling model of spatial competition, firms compete by locating on a linear space and offering differentiated products. Rents based on locational advantage play a central role in firms' profits, as they are able to charge prices that reflect their proximity to consumers. Monopoly power, the ability to price discriminate, and increasing returns to scale are not necessarily present in the Hotelling model.

In the Hotelling Model of Spatial Competition,profits Arise From