Question: Please show step by step process Please show work step by step #3 Philadelphia is the home of the cheesesteak sandwich, and two of the
Please show step by step process

Please show work step by step
#3 Philadelphia is the home of the cheesesteak sandwich, and two of the most popular restaurants that serve cheesesteaks, Pat's and Geno's, are bitter rivals located across the street from each other. Both restaurants have very loyal customer bases. According to market research, 79% of the customers who purchased a Pat's cheesesteak this month will continue to eat at Pat's next month, while 64% of the customers who purchased a Geno's cheesesteak this month will continue to eat at Geno's next month. In the previous month (October), 57% of cheesesteak eaters went to Pat's. (Although there are other locations that serve cheesesteaks, for simplicity, assume that these are the only two establishments whose market shares we are considering.) (a) Determine the predicted market shares for the two restaurants for November. (Round your answers to three decimal places.) (b) Determine the predicted market shares for the two restaurants for December. (Round your answers to three decimal places.) (c) Assuming the transition probabilities hold in the long-run, what will be the equilibrium market shares for the two restaurants? (Round your answers to three decimal places.)Step by Step Solution
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