Monocentric City Model

Given:

Figure 1

(Monocentric City Model, Figure 1) Lets consider a typical example of rents in a simple city in which urban density averages around 4 units (households) per acre or 2,560 households per square miles (q=0.0004) square miles). A structure costing $100,000 to build would rent for $7,000 per year using a 7% interest rate. Annual agricultural rental income from farming tends to fluctuate around $1,000 per acre, or $640,000 annually per square mile.

Question:

Find the annual commuting cost (k) for an average household with income of $40,000?

Housing Rent RO Location Rent Structure Rent 199 Agricultural Rent b Employment Center Housing Rent RO Location Rent Structure Rent 199 Agricultural Rent b Employment Center