Housing is supplied by a competitive building industry. Builders construct housing at different locations and then sell or rent it to households. The selling price/rent they charge at a distance of 5 kilometres is p(5)- $1.85 per square foot. Every household in the city consists of 43 units of capital, 1.100 square feet of floor space, and 1,400 square feet of land. All buildings in this city are the same height. The price of capital is $5. In the long run, how much would a builder be willing to pay in land rent, rid), for a piece of land they will build on, 5 kilometres from the city centre? O $1.00 per square foot $1.07 per square foot O $1.21 per square foot O $1.30 per square foot

Housing is supplied by a competitive building industry. Builders construct housing at different locations and then sell or rent it to households. The selling price/rent they charge at a distance of 5 kilometres is p(5)- $1.85 per square foot. Every household in the city consists of 43 units of capital, 1.100 square feet of floor space, and 1,400 square feet of land. All buildings in this city are the same height. The price of capital is $5. In the long run, how much would a builder be willing to pay in land rent, rid), for a piece of land they will build on, 5 kilometres from the city centre? O $1.00 per square foot $1.07 per square foot O $1.21 per square foot O $1.30 per square foot

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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