Suppose That Firms Are Located in a Circle on an Island

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 variable costs rise,

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.