Suppose that a company fells trees in a forest and uses the wood to make baseball bats. Production of one ton of baseball bats requires 1.5 tons of trees. The company has a contract to deliver 30 tons of baseball bats to a retailer in a market. The forest and the market are 100 miles apart. Overland shipment of trees costs $4 per ton per mile. Overland shipment of baseball bats costs $2 per ton per mile. Between the forest and the market, there is a river that must be crossed. The river is located 25 miles from the forest and it has no bridge. The cost of transporting the trees across the river is $2 per ton (even cheaper than over land because the trees can be floated across the river). The cost of transporting baseball bats across the river is much higher - $200 per ton, because a special kind of ship is needed to keep the baseball bats safe. The width of the river is negligible and can be ignored. The firm is trying to decide where they should locate their plant.

( no explanations needed)

a. What is the total transport cost if the plant is located on the market-side of the river?

b. What is the total transport cost if the plant is located on the forest-side of the river?

c. What is the total transport cost if the plant is located at the market?