On June 26, 2016 the Panama Canal Authority officially completed a ten-year, $5.2 billion improvement project. The expansion project doubled the shipping capacity of the canal and allows for a new (far larger) class of cargo ships to pass through the historic canal linking the Pacific Ocean and the Atlantic Ocean via Central America.

A. Of the eight characteristics (1.transportation facilities, 2.education facilities 3. created environment, 4.natural resources 5. climate 6.labor force 7.leadership 8. local laws and regulations) discussed in lecture that give certain locales comparative advantage, which one best describes the Panama Canal Expansion Project insofar as the city of Miami, Florida (the closest major city on the US Atlantic Seaboard) is concerned?

B. Provide a brief definition of each of the following concepts and briefly explain how they are related to each other:

Unique Characteristics

Comparative Advantage

Highest and Best Use

C. By comparing the needs and preferences of different users of land, what two key pieces of information does the Bid-Rent Curve tell us about rents in different areas of a city?