You and another person are the only two hot dog vendors operating on a beach. Th

Question

You and another person are the only two hot dog vendors operating on a beach. The other person is your competitor, not your partner. The beach is a mile long with people evenly distributed along the beach. Each person on the beach buys one hot dog a day from the nearest vendor. If the goal of you and the other vendor is to sell as many hot dogs per day as possible, where will you and the other vendor end up positioning yourselves on the beach? Explain your answer. Do you see any similar behavior with Lowe

Explanation / Answer

As the beach is evenly distributed I and the other vendor will try to obtain a position which is the centre of the 1 mile so that they can cover the whole area and are the ones which are nearest to the people as they are evenly distributed. Yes, the similar behavior is obtained by various organizations such as Lowe's and Home Depot, Mc Dona;s and Burger King, and Office Max and Staples due to the fact that they want to attract larger volumes of customers compared to their competitors to earn higher profits.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.