Suppose that landowners have the power to restrict x , the distance to the edge of the city, in order to increase the land rent they earn. Suppose that, with no restriction, the urban land rent function is given by r = 100 – x , where x is distance in blocks to the CBD. Suppose that agricul- tural land rent rA is equal to 20.

Show the new land-rent curve in your diagram, and indicate the area corresponding to the land-rent loss from the restriction, as well as the additional area showing the land-rent gain.

Don’t give me to many notifications because it will cause you to lose alot of points

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

From what part of income should someone take savings?