Hotelling's location model is useful for explaining:

Name: Hotelling's location model is useful for explaining:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Hotelling's location model explains why similar types of merchants, such as gas stations or fast-food restaurants, often cluster together in the same areas. This phenomenon is due to strategic considerations of capturing the largest market share by positioning themselves in the middle of a linear market, thus minimizing the distance for the largest number of consumers.

Hotelling's Location Model Is Useful for Explaining