Suppose That Firms Are Located in a Circle on an Island

question 35

Multiple Choice

Suppose that firms are located in a circle on an island. You are given transportation costs, fixed costs, variable costs, and demand (assume that customers are spread evenly along the circle) . As the firm's fixed costs increase,

• A)the number of firms will rise in the long run.
• B)the number of firms will fall in the long run.
• C)the number of firms will stay the same in the long run.
• D)It is impossible to tell from the information given.

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Definitions:

Membrane

A thin layer of tissue or material that acts as a boundary, separating different areas or substances, crucial in cellular function and structure.

Depolarization

The process by which a neuron's membrane potential becomes less negative, making the neuron more likely to fire an action potential.

Hyperpolarization

A change in a cell's membrane potential that makes it more negative, moving further away from zero, which decreases the likelihood of generating an action potential.

Sodium

A chemical element, represented by the symbol Na, that plays critical roles in the body, including maintaining fluid balance and conducting nerve impulses.