In the second part, some simple calculations are required. Use the equa- tion below. Show all calculations by hand where

[answerhappygod]

In The Second Part Some Simple Calculations Are Required Use The Equa Tion Below Show All Calculations By Hand Where 1 (84.39 KiB) Viewed 32 times

In The Second Part Some Simple Calculations Are Required Use The Equa Tion Below Show All Calculations By Hand Where 2 (38.87 KiB) Viewed 32 times

In the second part, some simple calculations are required. Use the equa- tion below. Show all calculations by hand where applicable. Consider an arrangement between profitability a and the number of firms n in the region: 7 = 225 – (n - 8) (6.6) 53 54 CHAPTER 6. CONSUMER CITIES AND CENTRAL PLACES Using this equation, we can tell each firm's exact profitability by the number of nearby firms. All other factors have been simplified out. Imagine that there are an infinite number of identical and empty regions, labeled region A, B, C, etc. Assume firms have no knowledge of any other firms coming afterward, they believe that they are the last firm. Assume firms may not move after they locate. The first firm must locate in an empty region (let's say it's "Region A” for example), leaving it profits of 176: 7 = 225 – (1 – 8)2 (6.7) = 225 - (-7) (6.8) T = 225 - 49 (6.9) (6.10) 7 = 176
4. Draw a graph showing the relationship between firm profitability and the number of firms in the region. 5. Where will the 17th firm locate, under these conditions? 6. Imagine, instead, you were the central planner. Arrange these 17 firms in a profit-maximizing manner, deciding how many firms go into each region. a) What is the total profitability under the initial conditions (all in one place)? Show your work. b) What is the total profitability under your guidance? Show your work.