Computed the Manufacturing Bid Rent Consider a manufacturing firm that occupies two hectares of land. The firm produces 10 tons of output per day and sells its output at a price of $80 per ton. The firm does not engage in factor substitution as the price of land changes. Intraurban transportation is on trucks, with a unit cost of $12 per ton per mile. The firm's nonland cost is $200 per day. The firm exports its output via circumferential highway (beltway). a. Draw the firm's bid - rent curve for land for different distances from the beltway, from a distance of zero to five miles. b. The bid rent at the beltway is. per hectare and the slope of the bid - rent curve is. per mile, computed as.....
Computed the Manufacturing Bid Rent Consider a manufacturing firm that occupies two hectares of land. The firm produces 10 tons of output per day and sells its output at a price of $80 per ton. The firm does not engage in factor substitution as the price of land changes. Intraurban transportation is on trucks, with a unit cost of $12 per ton per mile. The firm's nonland cost is $200 per day. The firm exports its output via circumferential highway (beltway). a. Draw the firm's bid - rent curve for land for different distances from the beltway, from a distance of zero to five miles. b. The bid rent at the beltway is. per hectare and the slope of the bid - rent curve is. per mile, computed as.....
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Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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Transcribed Image Text:Computed the Manufacturing Bid Rent Consider a manufacturing firm that occupies two hectares of land. The firm
produces 10 tons of output per day and sells its output at a price of $80 per ton. The firm does not engage in factor
substitution as the price of land changes. Intraurban transportation is on trucks, with a unit cost of $12 per ton per mile.
The firm's nonland cost is $200 per day. The firm exports its output via circumferential highway (beltway).
a. Draw the firm's bid - rent curve for land for different distances from the beltway, from a distance of zero to five miles.
b. The bid rent at the beltway is.
per hectare and the slope of the bid - rent curve is.
per mile, computed
as.....
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