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Urban Economics problem. Thank you (1) Bid Rents There are three bidders in town, office firms, office workers, and agricultural firms. Their respective bid rent

Urban Economics problem. Thank you

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(1) Bid Rents There are three bidders in town, office firms, office workers, and agricultural firms. Their respective bid rent functions are given by: Office firm Ro=200-5x, office workers Rw=180-x, and agricultural firms Ra=164. where R denotes the bid rent and x the distance from the city center. a) Where does each bidder locate? (calculate the respective distances from the city center) b) Now assume that the city imposes a fuel tax on offices and on office workers resulting in an increase in their corresponding marginal transportation cost by 1. How does this change your answer to (a)

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