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>>Housing is needed - more houses are built. Not sure why that can't be the case.

Because every unit increase in a circle's radius r, causes the area to go up by r*r. These ever increasing concentric circles, cause infrastructure demands and spending to keep going up by factors of square.

Every unit increase in a Pizza's radius demands more and more cheese. To a point you will realize you get more Pizza when you order a very large Pizza than ordering 2 small Pizza's.

At some point you get two cities for Cheap than expanding an existing one.

You just can't keep building additional housing this way. In Bay Area where people stay as far as San Ramon and travel to work, you realise the taxes are just crazy high.




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