A drinking company is deciding where to locate. The main input (water) is located 80 miles away from the city center. Wages costs depend on the distance and is given by 360-4x, while freight cost to ship the goods to consumers is given by 5x, where x is the distance to the market in both equations. If the revenue is constant at 800, please answer the following questions:

a) Ignoring the freight of the main input (water) and assuming that consumers are located at the city center, where should this manufacturing plant be located? Explain your decision by drawing the Bid for Land and other plausible arguments.

b) If the freight cost to transport water to the plant is 1/5 of the cost of transporting the final good, what would this drinking company do? Explain your reasonings.