Question: (5) Location Choice with Multiple Inputs Suppose a transport cost-oriented firm consumes 4 inputs (11, 12, 13, and 14) to produce one output, which is

(5) Location Choice with Multiple Inputs Suppose

(5) Location Choice with Multiple Inputs Suppose a transport cost-oriented firm consumes 4 inputs (11, 12, 13, and 14) to produce one output, which is consumed at the output market M (see Figure below). H is a transportation hub. Monetary weights are given in parenthesis: M(30), L (10), 12(10), I3(30), and 14(25). a) Where will a transportation cost minimizing company locate? a) Where will a transportation cost-minimizing company locate? b) Now assume the monetary weight of input source 14 decreases to $5 (all else stays the same), where will the company locate now? c) If all monetary weights (output as well as inputs) were equal to $10, can the firm locate anywhere? True or false? Explain. d) If all monetary weights (output as well as inputs) were equal to $10 and but 13 has a monetary weight of $20, where will the firm locate? (5) Location Choice with Multiple Inputs Suppose a transport cost-oriented firm consumes 4 inputs (11, 12, 13, and 14) to produce one output, which is consumed at the output market M (see Figure below). H is a transportation hub. Monetary weights are given in parenthesis: M(30), L (10), 12(10), I3(30), and 14(25). a) Where will a transportation cost minimizing company locate? a) Where will a transportation cost-minimizing company locate? b) Now assume the monetary weight of input source 14 decreases to $5 (all else stays the same), where will the company locate now? c) If all monetary weights (output as well as inputs) were equal to $10, can the firm locate anywhere? True or false? Explain. d) If all monetary weights (output as well as inputs) were equal to $10 and but 13 has a monetary weight of $20, where will the firm locate

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