Consider a monocentric city in which every household occupies one-fifth of an acre of land (l*=0.20) Suppose that the cost of commuting is $50 per mile per month, round trip (t=$50) Finally, suppose that a 0.20-acre lot 10 miles from the city center (d=10) rents or $1,000 per month.
What is the slope of the household bid rent function?