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An individual works downtown and pays $800 per month in rent for an apartment located 10 miles from her office. He has calculated that he
An individual works downtown and pays $800 per month in rent for an apartment located 10 miles from her office. He has calculated that he spends 50 minutes per day driving each way to the office and it costs him $25 per day in gas and lost productivity. Using the framework of the bid-rent model, how much would he be willing to pay for an apartment downtown, assuming a 20 workday month? Must show all work.
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