Everything costs more in the largest cities because it's so expensive to live there. What, that sounds like a tautology? No. A car costs the same, but you nee

Everything costs more in the largest cities because it's so expensive to live there. What, that sounds like a tautology? No. A car costs the same, but you need to pay much more for parking. Your housing costs are much, much higher, and so you need a higher salary. Everyone needs a higher salary to afford to live there, so labor costs are higher. The cost to build a school is higher (both real estate and construction costs) and you need to pay all your staff more so that they can live close enough to work at your school.