Imagine a Beach with Beachgoers Evenly Distributed Throughout

question 90

Multiple Choice

Imagine a beach with beachgoers evenly distributed throughout. It's a hot day and there are two ice cream vendors who start out far away from each other. They quickly discover that if they move closer to the center, they keep customers on their far side of the beach while poaching customers near their rival. Eventually, both vendors end up right next to each other in the middle of the beach. Which concept predicts the conclusion of this story?

• A) rational ignorance
• B) opportunity cost
• C) diffuse costs and concentrated benefits
• D) median voter theorem