Understand why some households and firms may have bid-rent curves "peaking" at points different from the CBD - Be able to explain in words and mathematically how relaxing the assumption that ALL jobs are located at the CBD does not necessarily change the predictions of the model (if wages fall as distance from CBD rises) - Be able to illustrate "wasteful commuting" with multiple business districts in the same city and explain why instances of wasteful commuting exist in real life if it be "more efficient" for some residents to switch homes. - Be able to describe rural-to-urban migration in the context of the model by relating the well-being of obtaining an agricultural wage to the well-being of obtaining the city wage (but also having to commute). Be able to articulate how agricultural-to-city relative wages theoretically impact the size of cities (both in terms of L and x) in a given country. - Understand the evidence presented in course materials showing the predictions of the model hold for American cities across several studies. - Understand the results of Glaeser, et al. (2008) regarding the role of public transportation in determining why poor live in cities. You should have a sense