Problem

Delivered Price of a Good In a discussion of the delivered price of a good from a mill to...

Delivered Price of a Good In a discussion of the delivered price of a good from a mill to a customer, DeCanio2 arrives at and solves the two quadratic equations

 (2n −1)v2 − 2nv + 1 =0

and

nv2 − (2n + 1)v + 1 = 0

where n ≥ 1.

(a) Solve the first equation for v.


(b) Solve the second for v if v < 1.

1S. J. DeCanio, “Delivered Pricing and Multiple Basing Point Equilibria: A Revolution,” Quarterly Journal of Economics, XCIX, no. 2 (1984), 329–49.

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