Figure 15.3 depicts a one-mile stretch of beach with 100 swimmers distributed evenly along the beach. There are two ice cream vendors - 1 and 2 - on the beach selling an identical product. Assume that each swimmer buys only one ice cream cone and that they prefer to buy ice cream from the nearer vendor. If neither vendor has an incentive to adjust their locations:

A. vendor 1 is at B while vendor 2 is at C.
B. vendor 1 is at A and while vendor 2 is at D.
C. vendor 1 is at A while vendor 2 is at E.
D. both vendors are at C.


Answer: D

Economics

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Economics