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28 Dec 2024, 03:11
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Ans: D
(B) Secure long-term construction contracts at fixed costs for materials and labor. (Incorrect: Cost of the material is not at the center of the restriction, and argument about the profit is related to the height of the building)
(C) Invest in building technologies that allow for faster construction of high-rises. (Incorrect: speed of construction is not the issue here)
(D) Develop several taller buildings in areas currently without height restrictions (Correct: if you build more taller building in the area the restriction (on % of height of existing building in their vicinity will allow for taller options compared with the area with shorter buildings, thus more apartments and more profit)
(E) Collaborate with other developers to lobby against the imposition of height restrictions. (Incorrect: lobby against is neither discussed nor can we say it will be successful)
Under the zoning laws of Metropolitan City, property developers are allowed to build residential high-rises with no height restrictions, allowing them to maximize the number of units per building. As developers rent individual units, the more units in a building, the more profitable it is. However, due to growing concerns about cityscape aesthetics and sunlight blockage, it seems inevitable that the city council will soon impose height restrictions on new buildings, limiting them to a percentage of the height of existing buildings in their vicinity.
(A) Plan to demolish older, shorter buildings in their portfolio if the restrictions take effect. (Incorrect: restriction is related to the taller buildings not the smaller one, this does not provide a solution)
(B) Secure long-term construction contracts at fixed costs for materials and labor. (Incorrect: Cost of the material is not at the center of the restriction, and argument about the profit is related to the height of the building)
(C) Invest in building technologies that allow for faster construction of high-rises. (Incorrect: speed of construction is not the issue here)
(D) Develop several taller buildings in areas currently without height restrictions (Correct: if you build more taller building in the area the restriction (on % of height of existing building in their vicinity will allow for taller options compared with the area with shorter buildings, thus more apartments and more profit)
(E) Collaborate with other developers to lobby against the imposition of height restrictions. (Incorrect: lobby against is neither discussed nor can we say it will be successful)
nousernamefine
Joined: 14 Jan 2024
Last visit: 11 Apr 2026
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Location: India
Schools: Columbia '27 Wharton '27 Stanford '27
GPA: 4
28 Dec 2024, 03:52
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height restrictions on new buildings, limiting them to a percentage of the height of existing buildings in their vicinity , Most effective measure would be to increase height of existing building in vicinity currently. So future restriction based on that height meets the requirement of height expected
Ans D (IMO)
Ans D (IMO)
Bunuel
28 Dec 2024, 03:55
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Hi everyone 
Last day!
We are dealing here with a strengthening problem.
Our goal is to minimize the impact on profitability of future projects due to the anticipated restrictions.
A - Demolishing shorter buildings would not directly address the problem of maximizing profit under future height restrictions. Elimination.
B - While this may reduce costs, it doesn’t address the core issue of maximizing profitability under future height restrictions. Elimination.
C - Faster construction may help before restrictions take effect, but it doesn’t directly address maximizing profit once restrictions are imposed. Elimination.
D - Building taller high-rises now, before restrictions take effect, is the most effective way to lock in profits for future projects. Correct.
E - While lobbying may delay restrictions, it is uncertain whether it will succeed. This doesn’t guarantee minimized impact on profitability. Elimination.
Our answer is D.
Last day!
We are dealing here with a strengthening problem.
Our goal is to minimize the impact on profitability of future projects due to the anticipated restrictions.
A - Demolishing shorter buildings would not directly address the problem of maximizing profit under future height restrictions. Elimination.
B - While this may reduce costs, it doesn’t address the core issue of maximizing profitability under future height restrictions. Elimination.
C - Faster construction may help before restrictions take effect, but it doesn’t directly address maximizing profit once restrictions are imposed. Elimination.
D - Building taller high-rises now, before restrictions take effect, is the most effective way to lock in profits for future projects. Correct.
E - While lobbying may delay restrictions, it is uncertain whether it will succeed. This doesn’t guarantee minimized impact on profitability. Elimination.
Our answer is D.
