The Theory of Land Rent Holds That

question 189

Multiple Choice

The theory of land rent holds that

• A)all plots of land are identical.
• B)all land yields a positive rent return.
• C)rent on any piece of land will equal the difference between the cost of producing the output on that land and the cost of producing it on marginal land.
• D)competition for superior plots of land will force the rent on those lands to a marginal return of zero.

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