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Starbucks Sells Coffee in Both New York City and in Rural

Question 277

Multiple Choice

Starbucks sells coffee in both New York City and in rural upstate New York. The price of coffee is higher in New York City. This fact means that the value of marginal product of land is ________ in New York City and so Starbucks is willing to pay a ________ rent in New York City.


A) lower; lower
B) higher; lower
C) lower; higher
D) higher; higher

Correct Answer:

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