Homework Help is Here – Start Your Trial Now!
Math
Advanced Math
Consider a manufacturing firm that has revenues of $160 per day. The firm must transport its output to a central freight terminal. Transportation costs to get output to the central freight terminal are $20 per mile. The firm employs labour that costs $60 per day if employed at the central freight terminal location, but those daily labour costs fall at a rate of $4 per mile from center. The firm has other non-land costs of $30 per day to buy raw materials.The firm requires 2 hectares of land for its operations. a) What is the firm's maximum willingness to pay per hectare of land at the central freight terminal location? Show your work. b) What is the equation of the firm's bid ront

Consider a manufacturing firm that has revenues of $160 per day. The firm must transport its output to a central freight terminal. Transportation costs to get output to the central freight terminal are $20 per mile. The firm employs labour that costs $60 per day if employed at the central freight terminal location, but those daily labour costs fall at a rate of $4 per mile from center. The firm has other non-land costs of $30 per day to buy raw materials.The firm requires 2 hectares of land for its operations. a) What is the firm's maximum willingness to pay per hectare of land at the central freight terminal location? Show your work. b) What is the equation of the firm's bid ront

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...
See similar textbooks
icon
Related questions
Question
Consider a manufacturing firm that has revenues of $160 per day. The firm must transport its output to a central freight terminal. Transportation costs to get output to the central freight terminal are $20 The firm employs labour that costs $60 per day if employed at the central freight terminal location, but those daily labour costs fall at a rate of $4 per mile from center. The firm has other non-land costs of $30 per day to buy raw materials.The firm requires 2 hectares of land for its operations. a) What is the firm's maximum willingness to pay per hectare of land at the central freight terminal location? Show your work. b) What is the equation of the firm's bid rent for land per hectare as a function of x, where x is distance in miles from the central freight terminal? Show your work. per mile.
Transcribed Image Text:Consider a manufacturing firm that has revenues of $160 per day. The firm must transport its output to a central freight terminal. Transportation costs to get output to the central freight terminal are $20 The firm employs labour that costs $60 per day if employed at the central freight terminal location, but those daily labour costs fall at a rate of $4 per mile from center. The firm has other non-land costs of $30 per day to buy raw materials.The firm requires 2 hectares of land for its operations. a) What is the firm's maximum willingness to pay per hectare of land at the central freight terminal location? Show your work. b) What is the equation of the firm's bid rent for land per hectare as a function of x, where x is distance in miles from the central freight terminal? Show your work. per mile.
Expert Solution
steps

Step by step

Solved in 3 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Algebra for College Students
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
Elementary Geometry For College Students, 7e
Elementary Geometry For College Students, 7e
Geometry
ISBN:
9781337614085
Author:
Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:
Cengage,
SEE MORE TEXTBOOKS