Add a secondindustryto Exercise 2 from Chapter 6.

Thisindustry produces a good for export at a price of $20 per unit at the point of export, and transportation costs are $1 per mile per unit of output. Other costs (labor and capital) are $10 per unit. Output is 75 units per acre.

a. Find the bid-rent function for this industry that corresponds to zero economic profits.

b. Where do the first (from Exercise 2 in Chapter 6) and the second industries locate in the city?