3. (30 pts) Suppose a city has all its economic activity on a linear line, as is shown in the figure below. There are 7 blocks, A-G, evenly distributed along the linear line. D is the downtown block. The transportation cost between any pair of contiguous blocks is $1. That is, traveling from D to E costs $1, from D to F is $2, and so on. Now suppose a business consulting firm is considering to put its office in one of the blocks. There is one customer in each block. The consultant needs to visit each customer once every month. In each visit, the consultant starts from the office, visit the customer, then return to the office. 2 Location: Blocks from center E F G Firm (a) (5 pts) What is the total monthly transportation cost if the firm chooses to locate in block D? (b) (15 pts) Calculate the total monthly transportation cost if the firm chooses to locate in each of the other locations. (c) (10 pts) Suppose now the monthly rent in block A or G (at the boundaries of the city) is $10. For the consulting firm, except for the cost in transportation, other operational cost is the same at any location. Calculate the bid rent for the firm in each location