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Which of the following decisions would entail the greater opportunity cost: allocating a square block in the heart of New York City for a surface
Which of the following decisions would entail the greater opportunity cost: allocating a square block in the heart of New York City for a surface lot or allocating a square block at the edge of a typical suburb for such a lot?
New York City there is greater demand for parking in the city.
New York City land is scarce in the city; this lot could be used for many other types of "revenuegenerating" buildings ie an apartment building department store
Suburbs there is greater demand for parking in the suburbs.
Suburbs land is more abundant in the suburbs; it would be better to use this land for parking rather than for a park or other facility.
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