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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The Answer of 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 $\sqrt { 2 }$

Suppose That Firms Are Located in a Circle on an Island