Profit may also be lower and risk higher due to the greater likelihood of robbery of store or its customers, each entailing higher security costs. It would only be appropriate if all the people attending football games would not have alternatively spent their money in Sacramento. This would be less than 700,000 people. O'Sullivan, Chapter 6, Number 9 a. Output of corn and rice is unaffected, so land owners bear full cost of cleaning up air.
All land is converted to corn production and supply of corn increases and supply of rice declines.
Under the assumption that these changes do not affect international rice and corn markets, consumers are not affected. If California's output of rice and corn is enough to affect the international market, the price of corn would fall and the price of rice would increase. Some land will converted back to rice production from corn production and appropriate changes in rice and corn prices will occur. If a city restricts the height of residential structures to four stories and nothing higher than this is now in existence beyond 5 miles from the city center, the residential bid-rent function beyond 5 miles remains the same. This makes the land less valuable for residential use and the curvature of the line declines or for a given distance from the center, the rent willing to be paid for residential use declines.