Given the following information, choose the arrangement that would result in the lowest total costs. Centralized production means that all units are produced in a single region and then shipped to the other regions where necessary. Dispersed production means that the quantity to be consumed in each region is produced locally in that region. Assume that each person consumes one unit and all regions have the same population.

A country has a total population of 20,000 people and ten regions.

Under dispersed production, production cost per unit is equal to $5

Under centralized production, production cost per unit is equal to $3 and transport costs are equal to $2.10 per unit.

Choose the arrangement that would result in the lowest total costs.

Group of answer choices

Centralized production

Dispersed production