4. A firm in an office earns total annual revenue of $1,000,000. It values proximity to the city center where it conducts business. At the city center, the firm's annual costs are $200,000. The opportunity cost of moving one mile from the city center is $100,000. a. Determine the firm's bid rent function for land.

4. A firm in an office earns total annual revenue of $1,000,000. It values proximity to the city center where it conducts business. At the city center, the firm's annual costs are $200,000. The opportunity cost of moving one mile from the city center is $100,000. a. Determine the firm's bid rent function for land.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 1.3P

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