Explain why this should result in larger income and employment multipliers for larger urban areas than for smaller urban areas. In the City of Trekberg, manufacturers have two mutually exclusive options for intracity freight. The transmitter can transport output for a distance of up to two miles but no further. There is only one transmitter per customer. It is not possible to combine transmitter and truck use.
All manufacturers are identical except for the mode of intra-urban transportation employed.
This is a continuation of Question 10. Now suppose that in the City of Trekberg, the matter transformer has been improved to instantly transport output up to 6 miles. The new improved transporter also uses a great deal of electricity. The further the output must be beamed over, the greater the electricity cost. Calculate the bid rent function for each of the following three sectors of business users of land in a monocentric city.