| Question |
Assume that, due to a local building ordinance, all office buildings in Metropolis are the same height. Under this condition, what is the only thing affecting the price per acre of land for office buildings? a) Commute costs. Buildings at the center of the city are more difficult to reach during the commute, causing the price of land to rise. b) Technology costs. Buildings near the center of the city require higher levels of technology to build, thus increasing the cost of land beneath them. c) Travel costs. More central offices have lower expected travel costs than those at the edge of the office district, which makes the land under them more valuable. d) Capital costs. Capital is expensive to transport, so buildings near the center of the city are more difficult to reach with trucks and thus more expensive to build. This increases the price of land. |
