Class Exercise: Locating to split the market Problem Q.1: Assume that total demand in a market is 100 and that customers are uniformly spread across the line segment from 0 to 100 . There are only two businesses in the market and there is no cost or service advantage held to be either business 1 or business 2 . Business 1 locates at point c, and business 2 locates at point 100-a as shown in the figure. A customer chooses one business or the other solely on the basis of distance travelled. What are the demands at business 1(dl) and business 2(d2)