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Economic Rent

A major city just doubled the annual fee for hot dog push carts that had exclusive rights to a spot just south of a major museum of art to $288,000...why would anyone pay this much for a push cart license? Who is obtaining the economic rent for the lucrative push cart location? How much economic profit is the push cart owner most likely earning?

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People would pay this much for a push cart license because they are expecting a much higher economic profit ...

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The solution answers the question below in great detail.

$2.19