The 1000 residents of Great Donut Island are all fishermen. Every morning they go to the nearest

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The 1000 residents of Great Donut Island are all fishermen. Every morning they go to the nearest port to launch their fishing boats and then return in the evening with their catch. The residents are evenly distributed along the 10-mile perimeter of the island. Each port has a fixed cost of $1000/ day. If the optimal number of ports is 2, what must be the per mile travel cost?

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Microeconomics and Behavior

ISBN: 978-0078021695

9th edition

Authors: Robert Frank

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