To say that land rent performs no incentive function means that:

A) higher rental payments will not bring forth a larger quantity of land.
B) rent is not a cost to specific firms,but it is a cost from the standpoint of the economy as a whole.
C) rent does not allocate land in terms of productive efficiency.
D) rent tends to allocate land into the most productive uses.

Incentive Function

The inducement that an increase in the price of a commodity gives to sellers to make more of it available (and conversely for a decrease in price), and the inducement that an increase in price offers to buyers to purchase smaller quantities (and conversely for a decrease in price).

Rental Payments

Rental payments are periodic payments made by a tenant to an owner for the use of property, such as for housing or commercial space.

Productive Efficiency

The production of a good in the least costly way; occurs when production takes place at the output at which average total cost is a minimum and marginal product per dollar’s worth of input is the same for all inputs.