An Example: R=E(p-a)-Efk
Assume price of strawberries at market (p) - $100/ton
Assume cost to produce strawberries (a) = $ 40/ton
Assume you can produce 10 tons of strawberries per hectare (E)
Transport cost (f)=$5/ton/km
Question: what is the profit (economic rent at various distances from the market?