My question is -
Why does it cost more to maintain services in a city than a village?
Answers
Answer:
One reason is the cost of space, which you already mentioned re: housing. But goods also need to be housed and space costs more per square meter in a city. Another reason is that often the factory or farm that mass produces goods / food are located outside the city... So there is added cost of transportation.
Answer:
One reason is the cost of space, which you already mentioned re: housing. But goods also need to be housed and space costs more per square meter in a city.
Another reason is that often the factory or farm that mass produces goods / food are located outside the city... So there is added cost of transportation.
Yet another reason is perceived value... The same reason an item costs more at Harrods than at Walmart.... You simply can charge more because wealthier folk perceive the value at Harrods to be higher.... The item sold inherits the perceived value of it's location... Ie: prosperous city etc etc...
Another reason is taxes. Taxes are higher in cities because of, again perceived value but also the high cost of maintenance of a city.
The reverse is also true for places that are very remote... But mainly only due to transport costs and low demand.