Suppose That Firms Are Located in a Circle on an Island

question 52

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) . In an example of restaurant location on an island, if the number of people on the island doubled, the number of restaurants

• A)would stay the same.
• B)would double.
• C)would halve.
• D)would increase by a factor of \(\sqrt { 2 }\)

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Definitions:

Earth's Magnetic Field

The geomagnetic field that extends from the Earth's interior into space, where it meets the solar wind, a stream of charged particles emanating from the sun.

Outer Core

The liquid layer of the Earth's core that lies beneath the mantle and surrounds the inner core, composed mostly of iron and nickel.

Subduction Zone

A region where one tectonic plate slides underneath another, often leading to volcanic activity and earthquakes.

Volcanoes

Openings in the Earth's crust through which molten rock, ash, and gases are ejected.