3. Consider a region with a workforce of 12 million in a single city. The urban utility curve reaches its maximum with 6 million workers and includes the following combinations W = number of workers; U = utility

W 1 2 3 4 5 6 7 8 9 10 11 12

U 23 33 43 48 52 55 50 45 40 35 30 25

A. Suppose the government establishes a new city with 1 million workers, leaving 11 million workers in the old city. Assume that number of cities remains at 2. Immediately following the establishment of the new city, the utility in the small new city is ____ and the utility in the large old city is ____ so the new city will _______ and old city will_____ (shrink/ grow)

B. In the long run equilibrium, the workforce in the old city is _____

C. A new city will be viable in the long run if the starting workforce is at least ____ because

_________________________________.