Asked by Darlesha Crump on Jul 04, 2024
Verified
Different rents on land reflect differences in the marginal revenue product of land.
Marginal Revenue Product
The additional revenue generated from using one more unit of a factor of production.
Different Rents
Variations in rental prices, often influenced by factors such as location, demand, and property features.
- Gain insight into the factors that decide land rent and the logic underpinning economic rents.
Verified Answer
PK
Philicia KabiaJul 07, 2024
Final Answer :
True
Explanation :
Different rents on land are due to variations in the marginal revenue product of land, which is the additional revenue generated from using an extra unit of land. Land with higher productivity or better location can generate more revenue, leading to higher rents.
Learning Objectives
- Gain insight into the factors that decide land rent and the logic underpinning economic rents.