Model description (Krugman model)+ : There are two locations; the west and the east. There are two types of agents: farmers and workers. Farmers do not move their locations whereas workers can freely move for the location of factory. There are 6 farmers and 4 workers. The number of farmers is equally located in the west and the east. + Consider that a manufacturer (which produce a product A) enters the model. The demand and price of the good A is fixed. Each farmers and workers demand 1 unit of the good A. The manufacturer is assumed to always supply the products as demanded and needs to hire all workers. The production amount is proportionate to the number of workers hired in each location. + Production cost of A consists of fixed cost to build a factory in a location and variable cost to hire workers. Fixed cost to build a factory is 4, and wage for a worker is 1. Production cost is not changed by the location of factory, but the transportation cost occurs if the product is moved to other location. Transportation of 1 unit of the good is 1. < 3-2. Let's consider that the number of farmers has changed from 6 to 10 (the distribution is still even, which means that there would be 5 farmers in the west and east) during the number of workers has fallen from 4 to 2 (but we assume that the producer still be able to provide the amount of the good demanded). If the other conditions are unchanged, what would be the optimal choice of the manufacturer? Choose all. (5pt) A. To build one factory in the west and hire 2 workers in there. < B. To build one factory in the east and hire 2 workers in there. < C. To build two factories and hire 1 worker in each location. < D. To build two factories but hire 2 workers in the west only.+ E. To build two factories bur hire 2 workers in the east only.+