Exhibit 29-4

Refer to Exhibit 29-4. If a per acre tax, T, is imposed on land use, the pure economic rent on land will

Question

Exhibit 29-4 ​

Refer to Exhibit 29-4. If a per acre tax, T, is imposed on land use, the pure economic rent on land will

Quizplus · Accepted Answer

The imposition of a per acre tax on land use would increase the cost of producing on that land. As a result, some land previously used for production will no longer be profitable, thus diminishing the competition for that land. Consequently, the amount of rent paid for the remaining productive land will decrease, reducing pure economic rent on land.

Exhibit 29-4 ​ Refer to Exhibit 29-4. If a Per Acre Tax, T

Exhibit 29-4 Refer to Exhibit 29-4. If a Per Acre Tax, T