Answer to Question 1
Families optimize when they choose homes. Suppose schools on the west side of the school boundary are better than the schools on the east side. Families are willing to buy homes on both sides of the boundary. This means that when families optimize they do just as well buying a home in either school district. Therefore, the prices of homes on the east side have to be just enough lower than the prices on the west side to persuade families to live in either district. A well-known study by Sandra Black relied on this line of argument and found that parents were willing to pay 2.5 percent more for a home if their children could attend schools with 5 percent higher test scores.
See Sandra E. Black Do Better Schools Matter? Parental Valuation of Elementary Education, Quarterly Journal of Economics, May
Answer to Question 2
If a firm is breaking even, it is earning exactly a normal rate of return. This means that total revenue is just enough to cover all economic costs including a normal profit.
The grey nurse shark is critically endangered on the Australian east coast.
Discharge summary information
Chimpanzees and horses have brains that are similar in size.
Central portal of the west facade, Reims Cathedral, France.
Laboratory Requisition Information
East Asia’s Environmental Challenges