ABSTRACT
It is time to head back to the beach, to see whether we can say anything more about the problem facing our hot dog vendors. When last we left the beach, there was one established hot dog vendor who had already set up her cart and had been in business for some time. The newcomer to the beach was trying to decide where to set up his hot dog cart. How can these two vendors benefit from our discussion of competition between two firms from Chapters 5 and 6? Is there anything that we have learned from the models of competition between two firms which we can use to figure out what the outcome of competition between these two vendors will be?
