qpaul owns a home on the top of a hill and enjoys, Business Economics

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qpaul owns a home on the top of a hill and enjoys

Q. Paul owns a home on the top of a hill and enjoys an unobstructed view of a large wooded area. The view was a large factor in his decision to buy the house and Paul values his view at $5000 per month. Sid purchases the undeveloped wooded area with plans to build a retail shopping centre. Sid expects to earn $10,000 a month from the shopping centre, which is $3000 more than his next best alternative.

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