Final answer:
The potential additional value created by combining two adjacent lots is termed synergistic effects, relating to optimal land use and internalizing externalities. This concept is significant in urban development and competitive business positioning, where combined parcels lead to optimal resource allocation.
Step-by-step explanation:
The potential additional value created by combining two adjacent lots is best described as the increase in utility and value due to the synergistic effects that occur when two properties are combined. This concept can be related to the logic of the Von Thünen model when considering agricultural efficiency and land use. Additionally, in the context of urban development and business competition, the strategic positioning of businesses next to each other can result in benefits such as shared customer bases and enhanced market presence. This concept of optimal land use also takes into account the concept of internalizing externalities, where the combined use of land could potentially lead to better outcomes for nature, though these benefits can be difficult to quantify.
For example, two firms located next to each other on Main Street may reach a state of equilibrium where each captures a roughly equal market share, benefiting from the other's presence. Similarly, the combination of parcels for diverse purposes, such as a house and a gas station, or integrating green spaces into urban development, could lead to the best utilization of the land, where the marginal benefits outweigh the marginal costs.