Question: Consider the matching model in a spatial context. Workers are uniformly distributed along a roadway. Each firm chooses an address along the roadway of

Consider the matching model in a spatial context. Workers are uniformly distributed along a roadway. Each firm chooses an address along the roadway of unit length and hires two workers. The cost of commuting is incorporated into the market wage. wage=40 + 30d where d is the distance from the worker to the nearest firm. What would be the equilibrium wage in a city with four workers and two firms? $ What would be the equilibrium wage in a city with ten workers and five firms? $

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