The difference between the cost of production on a piece of land less the cost of production on marginal land is called
A)usury.
B)profit.
C)rent.
D)interest.

Question

Quizplus · Accepted Answer

The difference between the cost of production on a piece of land less the cost of production on marginal land is called rent. This is because the difference in productivity between higher quality land and marginal land is often reflected in the rent that is charged for the use of the higher quality land. Profit is the difference between revenue and cost, while usury refers to excessive interest rates charged on loans. Interest is the cost of borrowing money. None of these terms accurately describe the difference in production costs between high-quality land and marginal land.

The Difference Between the Cost of Production on a Piece