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Suppose there are a highway road, and lots for factory. Freight cost occur 1 for 1 unit of product per 1km from the highway road
Suppose there are a highway road, and lots for factory. Freight cost occur 1 for 1 unit of product per 1km from the highway road and 0 after it reaches to the road. A firm needs 10 for hiring enough number of workers and there is no other non-land cost. The price of the bicycle is 5, and the quantity demanded is 5. Derive the market value of a location which is 3km far from the highway road.
A. 25
B. 15
C. 12
D. 5
E. 0
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