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Consider Chinese clothing manufacturing industry that exports all of its output by ship. Each rm has total revenue per mo nth of $30 one and

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Consider Chinese clothing manufacturing industry that exports all of its output by ship. Each rm has total revenue per mo nth of $30 one and a monthly non land production cost of 54,000. Each rm initially transports its output from its factory to the port on trucks. A rm s freight cost is $2000 {month per mile from the port. Suppose a second transport option is deyeloped: For a monthly xed cost of ssooo, a rm can use a train to transport its output from its factory to the put, up to a distance of 3 miles only. a. Draw two bidrent curves for manufa cturers, one for rms that only use the truck and a second for rms that only uses the train, locating port to the origin of your graph. Indicate where the firms will locate in such environment. h. Draw the optimal "merged\" hid rent curve for a rm that has acoess to both transportation options. Which rms will choose to use what strategy

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