It takes 3,000 households having average annual income of $50,000 within a 3-mile radius to support a grocery store. There are actually 6,000 households within 3-miles of the Shop-Rite Grocery that have $50,000 per year average incomes. Today, Shop-Rite is the only grocery store in this area. Using the concept of Nash Equilibrium in location, explain what the likely outcome will be for this area, given those conditions
It takes 3,000 households having average annual income of $50,000 within a 3-mile radius to support a grocery store. There are actually 6,000 households within 3-miles of the Shop-Rite Grocery that have $50,000 per year average incomes. Today, Shop-Rite is the only grocery store in this area. Using the concept of Nash Equilibrium in location, explain what the likely outcome will be for this area, given those conditions
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.3P
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It takes 3,000 households having average annual income of $50,000 within a 3-mile radius to support a grocery
store. There are actually 6,000 households within 3-miles of the Shop-Rite Grocery that have $50,000 per year
average incomes. Today, Shop-Rite is the only grocery store in this area. Using the concept of Nash Equilibrium in
location, explain what the likely outcome will be for this area, given those conditions
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