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

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.8P

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