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Consider the intracity location choice of a factory. The workforce commutes from a suburb 8 miles from the city center to the factory, and a

Consider the intracity location choice of a factory. The workforce commutes from a suburb 8 miles from the city center to the factory, and a one-mile increase in the distance between the factory and the suburban workforce increases the firm's labor cost by t L. The other inputs to the production process are ubiquitous. The firm transports its output from the factory to a central port for export at x =0. A one-mile increase in the distance between the factory and the port increases the firm's freight cost by t Q. The firm will choose the suburban location (x = 8) if . . . Illustrate.

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