Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes.
src="https://qoschin.com/media/4/ppg__rrr0818190951__f1q363g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If the first store to open in Miniville is located at A, to maximize the number of customers it attracts, the next store to open should locate:
A. at B.
B. at C.
C. just west of A.
D. just east of A.
Answer: D
Economics
src="https://qoschin.com/media/4/ppg__rrr0818190951__f1q363g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If the first store to open in Miniville is located at A, to maximize the number of customers it attracts, the next store to open should locate:
A. at B.
B. at C.
C. just west of A.
D. just east of A.
Answer: D
You might also like to view...
Which of the following statements is not correct?
A. A price ceiling set at $9 would result in a surplus. B.A price floor set at $14 would be binding, but a price floor set at $8 would not be binding. C.A price ceiling set at $8 would be binding, but a price ceiling set at $12 would not be binding. D. A price floor set at $11 would result in a surplus.
If marginal revenue equals marginal cost, the firm is maximizing profits as long as
A) the resulting profits are positive. B) marginal cost exceeds marginal revenue for greater levels of output. C) the average cost curve lies above the demand curve. D) All of the above are required.