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Answer the question: 🧾
Context: PA Consulting, a British firm, designs models for software based on game theory to help its clients solve specific problems in areas from pharmaceuticals to the production of television shows. British government agencies have asked PA Consulting to build models to test zoning rules that govern how many of a certain type of business should be allowed to operate in one area. To give a simple example; if two competing ice-cream sellers share a long beach, they will set up stalls back-to-back in the middle and stay put, explains Dr. Stephen Black, a modeller for PA. Unfortunately for potential customers at the far ends of the beach, each seller prevents the other from relocating - no other spot would be closer to more people. Introduce a third seller, however, and the stifling equilibrium is broken as relocations and pricing changes energize the market. By studying a chain of events such as this, software designers can assess the effect of change and see the patterns in possible outcomes that may occur. As a result, the use of modeling makes clients more inclined to look at future repercussions when making business decisions, Black says.
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Question: The writer refers to Stephen Black's ice-cream seller example in order to
A. Show the impact new competitors have on business.
B. Highlight the importance of location on business success.
C. Demonstrate that businesses must follow a strategy.
D. Clarify how pricing affects sales.
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