Choose the best answer in the bracket [ ].

Question 1

a) 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.

b) 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].

c) 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

d) As distance to the city center increases, the travel cost for information exchange [increases / decreases] at a(n) [increasing / decreasing / constant] rate.

e)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

f) 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.

g) Competition to be the tallest building [improves / reduces / does not change] the efficiency of the building market.

h) 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.