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Suppose Olivia operates her restaurant in a building she owns in the center of the city. Similar buildings in the neighborhood rent for $4000 per
Suppose Olivia operates her restaurant in a building she owns in the center of the city. Similar buildings in the neighborhood rent for $4000 per month. Olivia is considering selling her building and renting space in the suburbs for $3000 per month, but she decides not to make the move. She reasons: "I would like to have a restaurant in the suburbs, but I pay no rent for my restaurant now, and I don't want to see my costs rise by $3000 per month."Evaluate Olivia's reasoning.
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