1. Two stores, A & B, consider which town each of them should locate a branch at, Place X or Place Y? The total number of customers per day is 1800 in Place X and 900 in Place Y. A customer will spend 400 yen on average. When each store locates a branch at a different place, each monopolizes the customers at each location. When they locate it at the same place, A can get two fold demands of B.

a. Answer all possible pairs of locations of both stores. b. Make the payoff table. c. What is As best response for each of Bs locations? d. What is the Nash equilibrium in this game?