What happens to a resource when I build a city on its tile? For example if I build a city on top of sheep is the sheep lost?
2 Answers
Advantages:
you get access to that resource if you have the right tech (so it can be a good idea to build a city on strategically important resources like iron, oil, etc. - they will be better protected from spies and enemy units).
you don't need to wait several turns until the worker builds the improvement.
in fact resources DO give some kind of tile bonus if you build a city on them. This means +1 Commerce for Commerce Resources (Dye, Gold, etc.), +1 Food for Food Resources (Pig, Wheat, etc., but only on plain terrain, not hills), +1 Hammer for Production Resources (Iron, Ivory, etc. BUT +2 on hills). Even though these numbers seem to be small, in the beginning it can still be a big boost to a new city.
Disadvantages:
- you cannot build improvements on the resource, so in the long run you lose the huge hammer/commerce/food bonuses that would result from the improvement.
You get the resource (assuming you have the technology to get it), but you don't get the bonus food/production/money that you would normally get from building its associated improvement.