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So should Red Lobster be looking to locate near its competition? Why or why not? Also, what if the choice comes down to two cities

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So should Red Lobster be looking to locate near its competition? Why or why not? Also, what if the choice comes down to two cities with similar demographics? City A has, say, 6 similar restaurants while City B has, say, 3 similar restaurants. Is the answer definitely that Red Lobster should locate in City B? Do customers have a fixed number of times that they will eat out per month, or may that number vary if there are more choices

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