Consider the simple von-Thunen model of agricultural land use developed in class. This question asks you to analyze the land use of carrot farmers who use a fixed proportion production technology. Assume the following:

-- carrot yield (E) is 20 tons per acre

-- carrots sell at $15 per ton (P) at the market

-- non-land input costs (I) are $60 per acre

-- transport cost (t) is $4 per ton per mile

-- farmers pay the transport cost of moving carrots d miles to the market

a.Derive the bid-rent curve per acre of land for carrot farmers by imposing the appropriate long-run equilibrium condition.Explain the condition.Show all steps.

b.Plot the bid-rent curve for carrot farmers.Then calculate the land area where carrots are grown.

c. How much will the landlord charge to rent 1 acre at the city?at d=1 mile? at d = 5 miles?Show computations.

d.Where does Farmer Jones prefer to locate?Why