Hotelling's Location Model Is Useful for Explaining

question 3

Multiple Choice

Hotelling's location model is useful for explaining:

• A) simultaneous games.
• B) the clustering of similar types of merchants.
• C) game theory.
• D) the prisoner's dilemma.

---

Definitions:

Performance Measure

Indicators used to evaluate the efficiency, effectiveness, and impact of an organization's actions towards achieving predefined objectives.

Standard Cost Variances

The differences between the expected (standard) costs of goods or services and the actual costs incurred.

Contribution Margin Ratio

A financial metric indicating the percentage of each sales dollar that contributes to covering fixed costs and generating profit.

Common Fixed Costs

Costs that do not change in total regardless of changes in the level of activity or volume of output and are shared among multiple products or departments.