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8. (4 points) Suppose at a given point in time, 50 high type households are living in neighborhood A. Which of the possible equilibria will the neighborhood reach in the long run? (A) a (1 = 40) (B) b (a = 57) (C) c (x = 69) (D) d (x = 80) 9. (4 points) Suppose at a given point in time, 40 high type households are living in neighborhood A. Which of the possible equilibria will the neighborhood reach in the long run? (A) a (x = 40) (B) b (x = 57) (C) c (x = 69) (D) d (x = 80) Use the following figure to answer question 10: Profit per firm Number of firms in the cluster 10. (4 points) On the midterm it was determined that given the red graph above, 40 firms would exist in equilibrium in this cluster. Which of the 5 Axioms of Urban Economics guarantees that result? (A) Al: Prices adjust to achieve locational equilibrium (B) A2: Self-reinforcing effects generate extreme outcomes (C) A3: Externalities are inefficient (D) A4: Production is subject to economies of scale (E) A5: Competition generates zero economic profit