A firm will continue to purchase and use land until the value of the ________.

Name: A firm will continue to purchase and use land until the value of the ________.
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Question

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A firm will continue to purchase and use land until the value of the marginal product of land equals the price of land. This means that the firm is earning as much additional output (or revenue) from the last unit of land as it is paying for it. Beyond this point, it would not be profitable for the firm to purchase more land.

A Firm Will Continue to Purchase and Use Land Until