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Unformatted text preview: urgers Inc faces no competition and no threat of entry. How many stores should Burgers Inc open, and at what locations? Me Too Burgers is contemplating entering Line City. Me Too Burgers’ costs and prices are the same as Burgers, Inc. Moreover, consumers regard the products at both chains as equally good; so, if both brands are in town, each consumer buys from the closest store. b) At what locations should Me Too Burgers open stores, given that Burgers, Inc has opened the locations found to be optimal in part a? c) Recognizing the threat of entry by Me Too Burgers, at what locations should Burgers, Inc open stores? d) Would your analysis of these product‐location decisions be affected if you also considered the possibility of pricing competition, that is, if prices were then set independently, given the locations of the stores (rather than taking prices as...
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This note was uploaded on 05/04/2011 for the course ECON 121 taught by Professor Woroch during the Fall '07 term at University of California, Berkeley.
- Fall '07