Question 18 relies on the following information: Vendors A and B sell a homogenous good and simultaneously select where to locate on the boardwalk pictured below, with a number of customers in each...


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Question 18 relies on the following information:<br>Vendors A and B sell a homogenous good and simultaneously select where to locate on the boardwalk<br>pictured below, with a number of customers in each location equal to the number in that cell. Customers<br>purchase from whichever vendor is closest, and equidistant customers are split evenly.<br>Location 2<br>10<br>Location 5<br>20<br>Location 1<br>Location 3<br>Location 4<br>Location 6<br>Location 7<br>20<br>20<br>10<br>20<br>In which location will Vendor A locate in equilibrium?<br>

Extracted text: Question 18 relies on the following information: Vendors A and B sell a homogenous good and simultaneously select where to locate on the boardwalk pictured below, with a number of customers in each location equal to the number in that cell. Customers purchase from whichever vendor is closest, and equidistant customers are split evenly. Location 2 10 Location 5 20 Location 1 Location 3 Location 4 Location 6 Location 7 20 20 10 20 In which location will Vendor A locate in equilibrium?

Jun 10, 2022
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