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Q #1: Von-Thunen Model (4 pts) Refer to the von-Thunen model where a city's market reaches to the left and to the right. The firm

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Q #1: Von-Thunen Model (4 pts) Refer to the von-Thunen model where a city's market reaches to the left and to the right. The firm is competitive and its price equals marginal cost with MC=$5. Marginal transportation cost per round trip (t) equals $4/km. The firm's market reach is 4.75km in either direction. (a) Calculate customers' WTP. (3pts) At the maximum market reach WTP=c+tx a0 WTP=24

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