Question: . Given the location triangle and assumptions below, answer the following questions: Assume: The transportation costs on each isodapane represent transportation costs per unit of

. Given the location triangle and assumptions below, answer the following questions: Assume: The transportation costs on each isodapane represent transportation costs per unit of production of moving away from point K. The firm currently believes that the minimum cost of production is at location K given its relationship with external markets MI, My and M3. The firm is currently entertaining recruiting offers to move its location to other areas in the region, specifically along panes Q. R, S, or T to the right of point K. It believes it can save labor costs by relocating to more rural areas. At their current location K, assume the total labor cost is $80 per unit of production. Analysts at the firm have put together the following table of labor cost savings (compared to the current level of $80) and increased transportation costs as defined by the isodapane lines if they were to move. The values below are per unit of production. Labor Cost Increased Area Savings ($) Transport Costs ($) Q 12 10 R 25 25 35 40 55 50
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