Let's say there are two sectors of aneconomy, firms and households. Eachhousehold supplies labor to the firms.Households earn $100 per month, they spend$1 per mile to commute to work and theyspend $50 on all other goods. Firms produce1 ton of goods and earn $100 per month netprofits on production, but must pay $10 perton mile to ship its output to the port. Allfirms, residents use 1 acre of land.Calculate each sector's bid rent function.That is, what is each sector's ability to pay fora location as a function of distance to thecenter? How far from the center will land usechange from business use to residential?Draw a graph of the sector's bid rentfunction as a function of distance from thecenter. Be sure to label the graph anddescribe the location of each sector.

We need to frame the problem and make functions according to it to solve the question. Basic logic…

Calculate each sector's bid rent function. That is, what is each sector's ability to pay for a location as a function of distance to the center? How far from the center will land use change from business use to residential? - Draw a graph of the sector's bid rent function as a function of distance from the center. Be sure to label the graph and describe the location of each sector.

Calculate each sector's bid rent function. That is, what is each sector's ability to pay for a location as a function of distance to the center? How far from the center will land use change from business use to residential? - Draw a graph of the sector's bid rent function as a function of distance from the center. Be sure to label the graph and describe the location of each sector.

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...

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