Suppose that at time t = 0, both Paul and Bob are making

Chapter , Problem 21

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Suppose that at time t = 0, both Paul and Bob are making (equal) small profits, but Glen is just breaking even [x(0) = y(0) are small and positive, but z(0) = 0]. (a) Sketch the solution curve in the xyz-phase space. (b) Sketch the x(t)-, y(t)-, and z(t)-graphs of the solution. (c) Describe what happens to the profits of each store.

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