Which of the following statements is incorrect about Losch’s Profit Maximization Theory?
(A) Losch assumes uniform transport costs in all directions.
(B) Losch’s hexagonal market areas are derived from agglomeration effects.
(C) Higher consumption of goods leads to increased profitability in Losch’s model.
(D) Demand cones expand market areas as transport costs increase
1
(A) and (B) only
2
(B) only
3
(A) and (C) only
4
(B) and (D) only