1. The transportation cost is $100 per ton per mile. A factory is producing 10 tons of output peryear and pays $5000 for rent for its half-acre plant at 3 miles away from the CBD, where thetrain station is.i. What is the rent per acre for land at 2 miles away from CD?600012000O 80004000

Rent for half acre land 3 miles away from CBD = $5000 Therefore Rent on one acre land 3 Miles away…

Answered: at is the rent per acre for land at 2…

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at is the rent per acre for land at 2 miles away from CD?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter18: Pricing The Factors Of Production

Section: Chapter Questions

Problem 2TY

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Concept explainers

Labor Force Participation Rate analysis

The labor force participation rate analysis calculates the percentage of the working-age population either employed or actively seeking work. It can be anyone in the age category of 16 to 64, on the condition that they are not institutionalized. A high labor force participation rate shows that more people are employed and contributing their wages to the economy, making it a healthy economy. It also shows that there are more people actively looking for employment leading to more hiring options for employers. On the other hand, a low labor force participation rate shows a low number of people employed or looking for work. This leads to an economic setback with fewer wages going into the economy. In such a scenario, employers might have to cut back on profits, lay off employees, or stop the process of hiring.

Question

1. The transportation cost is $100 per ton per mile. A factory is producing 10 tons of output per
year and pays $5000 for rent for its half-acre plant at 3 miles away from the CBD, where the
train station is.
i. What is the rent per acre for land at 2 miles away from CD?
6000
12000
O 8000
4000

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