Question: 8. Two markets are located 100 miles apart. A processor is looking to locate between these two markets right at the market boundary. The price

8. Two markets are located 100 miles apart. A

8. Two markets are located 100 miles apart. A processor is looking to locate between these two markets right at the market boundary. The price consumers will pay in Market A is $6, while the price they will pay in Market B is $5. The transportation cost per unit per mile to A is $.05, while the cost per unit per mile to B is $.02. Where would the market boundary be between Market A or Market B (miles to A and miles to B)? (10 pts) Pa=$6, TCa=$.05, NPa=$6$.05Da Pb=$5, TCb=$.02, NPb=$5-$.02*Db Market Boundary=NPA ENPb Da + Db=100 Nra= NPb= Da= Db=

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