Question: Suppose there are four equal size cities, A, B, C and D, located as follows: A D B C Suppose that residents of these cities

Suppose there are four equal size cities, A, B, C and D, located as follows: A D B C Suppose that residents of these cities consume fresh vegan mayonnaise, with consumption equal- ing 1000 bottles in each city. The firm that produces fresh vegan mayo is deciding how to arrange its production; it could produce a quarter of the output in smaller firms located in each city and sell without any shipping costs, or it could produce the entirety of their output in the centrally located city D, and ship 1 quarter of the output to A, B and C each, with the remaining quarter consumed in city D

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