An increase in land rents
A)will bring some previously zero-rent land into productive use.
B)will lead to land to be used less intensively as its marginal revenue product has decreased.
C)will lead to an increase in the marginal revenue product of all inputs used in production on the land.
D)will lead to an increase in the marginal revenue product of all inputs used in production except for the land.

Question

Quizplus · Accepted Answer

An increase in land rents typically indicates a higher demand for land, which can make previously unprofitable or zero-rent land viable for production as landowners and producers seek more cost-effective options.

An Increase in Land Rents