Question
True, false or uncertain? Justify your response to the following statement. The Canadian Space Agency wants to establish good relations with people on Luna because
True, false or uncertain? Justify your response to the following statement.
The Canadian Space Agency wants to establish good relations with people on Luna because the Lunatic's ambassador will give transporter technology which can teleport any item to any place on Earth for a fixed fee. The government will license this technology to any firm for $1000 and the cost per shipment depends only on the energy needed to run the machine, which will be $5 per shipment. For the furniture business, this technology represents an improvement on the best currently available technology, which costs $1 per km. Therefore, if the average cost of shipping to a customer in a firm's market area was $10 before the new technology was adopted then adopting this new technology would double the size of each furniture manufacturer's market area in equilibrium.
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