1.Suppose two beach shack owners are wanting to select the appropriate location on the beach for their shacks. There are 1000 beach-goers on the left of the beach, 800 in the centre, and 200 on the right. Each beach-goer will go to the shack closest to them. In case the two shacks are equidistant, assume the market splits equally.

a.Model the choice of the shack owners as a simultaneous game.

b.Does any player have a dominant or dominated strategy?

c.Find all the Nash Equilibria

d.Select one of the Nash Equilibria that you think is most likely to .be played. Explain.