Asked by Zarria Turner on Apr 29, 2024
Verified
Increases in rent are generally due to
A) rises in the supply of land.
B) rises in the MRP of land.
C) declines in the supply of land.
D) declines in the MRP of lanD.
MRP of Land
Marginal Revenue Product of Land denotes the additional revenue generated from the utilization of an additional unit of land, underpinning its value in production.
Supply of Land
The total quantity of available land or real estate, which is inherently fixed but can vary in usability and value due to location, zoning, and development.
- Gain insight into the components that result in variations of rental charges and the assessment of land worth.
Verified Answer
LB
Lexie ButcherMay 02, 2024
Final Answer :
B
Explanation :
Increases in rent are generally due to rises in the MRP (Marginal Revenue Product) of land, which means there is an increase in demand for that land or a decrease in the supply of the land available for rent.
Learning Objectives
- Gain insight into the components that result in variations of rental charges and the assessment of land worth.