Business, 11.02.2021 22:00 mariaaalopezz

Suppose that a household resides in an urban area at a distance of 8 miles from downtown. The household occupies a residential lot measuring 5000 square feet, and at this distance from downtown land rent is $2.00 per square foot per year. One of the members of the household must commute to downtown for work five days a week (50 weeks per year) The total cost of this commuting (counting time costs as well as monetary costs) is $6.00 for each work day. a. How much is the household currently paying in land rent per y ear?
b. How much is the household currently paying in commuting costs per year? Show your work.
c. Assume that the per mile cost of commuting is everywhere the same (i. e., it's the same cost to travel a mile either near downtown or on the outskirts of town). How much would the household's annual commuting costs be if they lived 6 miles from downtown or 10 miles from downtown? Show your work
d. Assume that land rent is $2.20 per square foot 6 miles from downtown and $1.80 per square foot 10 miles from wwwntown. If the household rented a lot of exactly the same size as they currently do, how much would their land rent be per year if they lived 6 miles from downtown or 10 miles from downtown? Show your work.
e. Assuming that land rent and commuting costs are the only factors being considered by this household, is living 8 miles from downtown a locational equilibrium for this household? Why or why not? If not, should they move closer to or farther from downtown?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 18:20

Amathematical approximation called the rule of 70 tells us that the number of years that it will take something that is growing to double in size is approximately equal to the number 70 divided by its percentage rate of growth. thus, if mexico's real gdp per person is growing at 7 percent per year, it will take about 10 years(=70/7) to double. apply the rule of 70 to solve the following problem. real gdp per person in mexico in 2005 was about $11,000 per person, while it was about $44,000 per person in the u.s. if real gdp per person in mexico grows at the rate of 5 percent per year: how long will it take mexico's real gdp per person to reach the level that the united states was at in 2005? (hint: how many times would mexico's 2005 real gdp per person have to double to reach the u.s.'s 2005 real gdp per person?

Answers: 3

Answer

Business, 22.06.2019 20:20

Trade will take place: a. if the maximum that a consumer is willing and able to pay is less than the minimum price the producer is willing and able to accept for a good. b. if the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good. c. only if the maximum that a consumer is willing and able to pay is equal to the minimum price the producer is willing and able to accept for a good. d. none of the above.

Answers: 3

Answer

Business, 22.06.2019 20:30

Mordica company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $156,960, $382,800, and $84,640, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,180, machine hours 25,520, and number of inspections 1,840. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection

Answers: 1

Answer

Business, 22.06.2019 21:30

Suppose that alexi and tony can sell all their street tacos for $2 each and all their cuban sandwiches for $7.25 each. if each of them worked 20 hours per week, how should they split their time between the production of street tacos and cuban sandwiches? what is their maximum joint revenue?

Answers: 3

Answer

You know the right answer?

Suppose that a household resides in an urban area at a distance of 8 miles from downtown. The househ...

Questions