Business, 20.04.2020 20:50 tilacohen

Suppose that there are customers distributed evenly across a line which runs from 0 to 1. There are two competing vendors that choose where on the line to locate. Customers buy from whichever vendor is closest to their location. If the first vendor is located at 1/3, what is the best response for the second vendor?

a. 2/3
b. 1/2
c. Slightly to the left of 1/3
d. Slightly to the right of 1/3

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Suppose that there are customers distributed evenly across a line which runs from 0 to 1. There are...

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