One theory that predicts sustained wage and rent differentials is based on the idea that your accumulation of human capital raises the productivity of the other workers and the physical capital in your locale.In this situation,human capital accumulation creates

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The theory described suggests that the accumulation of human capital in a particular locale raises the productivity of other workers and physical capital in that area. This leads to external benefits, as the increased productivity of other workers and physical capital in the area results in higher wages and rents. Therefore, Choice B, external benefits, is the best answer. Choices A, C, and D are not relevant in this context.

One Theory That Predicts Sustained Wage and Rent Differentials Is