Reference no: EM133125967
Question 1.1
In a monocentric city, central land in the CBD is occupied by the land user with higher [transportation / production / labor / total] cost and thus a [steeper / gentler / vertical / horizonal] land bid curve.
Question 1.2
In a monocentric city, the rational location choice for a manufacturer is to locate close to the central node and far from its workforce because the cost of transporting [capital / labor / output / raw material] is high relative to the cost of transporting [capital / labor / output / raw material].
Question 1.3
The introduction of a streetcar in a monocentric city [increases / decreases / has no effect on] land rent near the city center and [increases / decreases / has no effect on] land rent near the city's original edge
Question 1.4
As distance to the city center increases, the travel cost for information exchange [increases / decreases] at a(n) [increasing / decreasing / constant] rate.
Question 1.5
The rule for the profit-maximizing building height is [marginal benefit / total revenue / willingness to pay] = [marginal cost + prize / total cost / marginal cost / economic profit
Question 1.6
As distance to the city center increases, an office firm's willingness to pay for space [increases / decreases / remains] at a(n) [increasing / decreasing / constant] rate.
Question 1.7
Competition to be the tallest building [improves / reduces / does not change] the efficiency of the building market.
Question 1.8
An increase in the accessibility of an office site [increases / decreases / does not change] the base price of office space, [increases / decreases / does not change] building height, and [increases / decreases / does not change] the willingness to pay for office land.
Question 1.9
Following our model on office space, indicate the relationship for each pair of variables: [positive / negative / no effect / ambiguous]
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Parameter
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Choice Variable
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Relationship
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Price of office space
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Building height
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Price of office space
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Willingness to pay for office land
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Price of office land
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Office lot size
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Wage
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Bid for office land
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Prize for tallest building
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Surplus of building market
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