(Answered) Question consider a simple homogeneous monocentric city

Management Studies

Question: Consider a simple, homogeneous monocentric city with a circular shape. If the location rent premium at the center is $6,000 per year per acre and the density is three persons per acre, what is the annual transportation commuting cost per capita for residents at the outer edge of the city? Supposing that the annual transportation cost per person per mile of distance from the CBD is $200 (round-trip), how big is the radius of the city?

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