QUESTION 11 [3 Marks] A number of ice cream vendors must decide where to locate their carts along a straight beach. Beachgoers who want to buy ice cream are distributed uniformly along the beach and each buys his/her ice cream from the nearest cart - the distance they must travel does not influence their decision to buy or not to buy and all prices are equal and fixed by government. Consider the choices of locations illustrated below (numbers indicate relative distances): 2 11.1 Define the concept of a Nash equilibrium. [1] 11.2 Is the situation illustrated a Nash equilibrium? Briefly explain. [2]