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City A has real estate costs of $100 per unit and wages of $50,000 per worker. City B has real estate costs of $100 per
- City A has real estate costs of $100 per unit and wages of $50,000 per worker. City B has real estate costs of $100 per unit and wages of $40,000 per worker. Which of these statements appears true based on the Roback model?
- City A offers both higher amenity to workers and higher productivity to firms
- City A offers higher productivity to firms, but City B offers higher amenity to workers
- City B offers higher productivity to firms, but City A offers higher amenity to workers
- City B offers both higher amenity to workers and higher productivity to firms
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