The purchase price of land is:

Question

Quizplus · Accepted Answer

The purchase price of land refers to the price that a person pays to own the factor of production, which is the land itself. Therefore, option D is the correct answer. Option A is incorrect because it refers to the price received from the flow of land services rather than the purchase price. Option B is incorrect because it refers to the value of the land to the firm over a time period, which is not the same as the purchase price. Option C is incorrect because the rental price may be either more or less than the purchase price, depending on various factors.

The Purchase Price of Land Is