Suppose pizzerias and sushi bars experience roughly the same economies of scale, with a common minimum market size of 200,000 meals per year. the per-capita demand for pizza is 20 meals per year and the per-capita demand for sushi is 4 meals per year. suppose you move from a city with a population of 20,000 to a city with a population of 60,000.
the number of pizzerias will change from to
the number of sushi restaurants will change from to
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Suppose pizzerias and sushi bars experience roughly the same economies of scale, with a common minim...
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