Land use allocatio questions explain


Variables Good A Good B Good C
Price (P) 6 8 3
Quantity (Q) 100 100 300
Total wage (W) 250 390 150
Interest cost (I) 50 50 550
Transportation (t) 0.20 0.40 0.15
Question1:
a. What will be produced where if only good A and B are produced?
b. What would be the impact of the transportation cost of good A increasing to 0.40?
Question2:
a. Redo the land allocation assuming that all 3 goods are competing for land?
b. If the transportation cost of good C decreases to 0.05, what is the resulting spatial
distribution of land use
jj124
Asked Feb 22, 2012
This reads like all of us have been standing at the back of the classroom and completely understand where you are in the course you're taking and the question. I suspect you will get a better answer from ZTextbook than from EHelp. :-)
Rob
Answered Feb 22, 2012

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