onsider 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 4 0 3 0 d 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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Question: onsider the matching model in a spatial context. Workers are uniformly distributed along a roadway. Each firm chooses an address along the roadway of unit

onsider 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 + 30

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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