1. Your friend David needs to decide where to locate his manufacturing plant and asks Joe for advice because you do not have time to deal with David. After researching, Mary found that wages in his region have the following cost depending on the distance to the market: 200 - 3x, while the freight cost to ship the goods to consumers is given by 5x, where x is the distance to the market in both equations.

a. Based on this information, is the Bid for Land curve upward or downward-sloping? Why?

b. Draw the Bid for Land for this manufacturing plant, considering a revenue constant of $450.

c. Imagine now that one input for this plant is located 50 miles from the market and your friend bought the company that used to provide him this input for a fixed price regardless of your location. This input weighs 80% of the final product, related to its cost per mile. Based on this information, will your friend change its plant location? Why?

d. What would be the percentage of weight from a single input that transportation costs would not matter to the location of your friend's plant?