Consider a region with 6 million workers and two cities (A and B), each with an...

 

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Consider a region with 6 million workers and two cities (A and B), each with an initial workforce of 3 million (the utility-maximizing workforce). Suppose the heli-segway (a flying personal transporter) replaces the automobile, cutting commuting cost and increasing the utility-maximizing urban workforce per city to 5 million. The positively sloped part of the new utility curve is steeper than the negatively sloped part. A. Show the effect of the heli-segway on the urban utility curve in the typical city. B. A workforce of 3 million [is, isn't] a stable equilibrium because.... C. Using the new utility curves, show the changes in the workforces of two cities one that grows and one that shrinks. Label the initial point i and indicate the directions of the changes with arrows. D. The new equilibrium number of cities is and each city has a population of Consider a region with 6 million workers and two cities (A and B), each with an initial workforce of 3 million (the utility-maximizing workforce). Suppose the heli-segway (a flying personal transporter) replaces the automobile, cutting commuting cost and increasing the utility-maximizing urban workforce per city to 5 million. The positively sloped part of the new utility curve is steeper than the negatively sloped part. A. Show the effect of the heli-segway on the urban utility curve in the typical city. B. A workforce of 3 million [is, isn't] a stable equilibrium because.... C. Using the new utility curves, show the changes in the workforces of two cities one that grows and one that shrinks. Label the initial point i and indicate the directions of the changes with arrows. D. The new equilibrium number of cities is and each city has a population of

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A The introduction of the helisegway will shift the urban utility curve upward with the upward shift ... View the full answer