The monopoly firm is deciding how many ice cream carts to distribute in the town. Each cart has a cost of 1. The consumers have a utility for ice cream of V=10. The unit transport cost of the consumers is 5. Which of the following is true??
A) The optimal number of ice cream carts is 3.
B) The optimal number of ice cream carts is 2.
C) None of the answers is correct
D) The optimal number of ice cream carts is 1.
???????????????????????????????The answer is D but how do you solve this?
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