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Practice Sheet: Factory town Consider a shirt factory that produces shirts at a cost of $0.2. People around the factory can make shirts at a

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Practice Sheet: Factory town Consider a shirt factory that produces shirts at a cost of $0.2. People around the factory can make shirts at a cost of $2. The cost of a round trip mile is $0.3. 1. Fill the table below Location of the Cost of a Cost of a The Cost of Im Shits household in homemade factory miles away from the factory household buys from shirt shirt 0 xi miles 1 2 away Short factory: $.2 Around factory: $2 Roundtrip it.3 3 4 S 6 8 2. What is the market area of the factory? Use a graph to show your answer. 3. If the transportation cost falls to $0.1 per round trip milc, how does this change affect the market area of the factory? How does this affect the size of the city? 4. If the cost of a shirt falls, how does this affect the size of the city

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