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1. How does improved transportation affect the bid-rent curve? 2.

1.  How does improved transportation affect the bid-rent curve? 

2.  Would taxing land more heavily yield a Pareto improvement? Please elaborate. 

3.  Please discuss two reasons why land values are higher in the CBD than in places further away.

4.  Please provide an example of when the “closed-city” case approximates reality. Explain why this is so. 

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