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Building heights Buildings are taller in the center of Boston than in the suburbs. Land prices are also higher downtown.
1. Building heights
Buildings are taller in the center of Boston than in the suburbs. Land prices are also higher downtown.
a. Use an isoquant diagram with land on one axis and capital (for building costs) on the other axis, to help explain why buildings are taller in the city center. [Hint: What do the isocost curves look like?]
b. According to the Boston Globe of February 23, the first garage in Boston to use robots to park cars has just opened (see http://epaper.bostonglobe.com/infinity/article_popover_share.aspx?guid=2b5aff2c-182a-44f9-8163-9ccf5b4b061a). Why is this technology unlikely to be used in suburban parking lots any time soon? In your answer be sure to explain how the principle of substitutionapplies in this case.
