1 Two competing firms are deciding whether to locate a new store at point A, B, or...

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1 Two competing firms are deciding whether to locate a new store at point A, B, or C. There are 52 prospective customers for the two stores. Twenty customers live in village A, 20 customers live in village B, and 12 customers live in village C (see Figure 6). Each customer will shop at the nearer store. If a customer is equidistant from both stores, then assume there is a 1/2 chance that he or she will shop at either store. Each firm wants to maximize the expected number of customers that will shop at its store. Where should each firm locate its store? (AB = BC = 10 miles.)

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