Use the Following Information to Answer the Subsequent Questions

question 4

Multiple Choice

Use the following information to answer the subsequent questions. A simple monocentric city Roundville) has a population of 3,000,000 with a homogeneous density of 5 inhabitants per acre, and one person per household. Agricultural rents are $500/acre/yr, housing construction costs including developer profit) can be paid for with a perpetual loan charging interest of $5000/house/yr, and transportation costs are $250/person/yr per mile of distance from the center of the city. Recall that there are 640 acres per Mi².)
-What is the annual transportation cost per household at the edge of Roundville?

• A) $250.
• B) $1,250.
• C) $4,000.
• D) $4,320.