Suppose Acre a Is Located at the Market with Zero

Multiple Choice

Suppose acre A is located at the market with zero transport costs of bringing its radishes to market. It costs acre B, located 20 miles away, $500 to transport its radishes to market. If demand for radishes is large enough so that both acres will be used to produce radishes,

A) the owner of acre A will earn zero location rent
B) the owner of acre B will earn location rent of $500
C) the owners of acres A and B will earn combined location rents of $1,000
D) as long as one acre is located at the market, neither landowner of acre A nor B will earn location rent
E) the owner of acre A will earn a location rent of $500