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__1420829190927__f1q536g1.jpg" alt="" style="vertical-align: 0.0px;" height="95" width="382" />If three stores were to open sequentially, you would expect that those stores would be located:

A. in a cluster, near the location chosen by the first store to locate.
B. at points A, B, and C.
C. halfway between the mountains and A, halfway between A and B, and halfway between B and C.
D. in a cluster, nearest the mountains.

Answer: A

Economics