Consider a region with a single factory city that developed as a result of scale economies in production. Consider the effects of a new matter transmitter, which can instantly transport goods (but not people) from the factory to any consumer up to 12 miles away, with a zero marginal cost of transport. The hourly cost of the transmitter is one loaf of bread. Using Figure 2–1 as a starting point, show the effects of the matter transmitter on the market area of the factory. Is “martini glass” still an apt descriptor of the ?gure? If not, what is a better descriptor?

QUESTION:

Consider a region with a single factory city that developed as a result of scale economies in production. Consider the effects of a new matter transmitter, which can instantly transport goods (but not people) from the factory to any consumer up to 12 miles away, with a zero marginal cost of transport. The hourly cost of the transmitter is one loaf of bread. Using Figure 2–1 as a starting point, show the effects of the matter transmitter on the market area of the factory. Is “martini glass” still an apt descriptor of the figure? If not, what is a better descriptor?