A landlord will supply her land for rental only if in equilibrium

Question

Quizplus · Accepted Answer

This is because the landlord will only supply her land for rental if she can receive a return that is at least equal to the opportunity cost of using the land herself. The opportunity cost is the potential income she could earn by using the land for her own purposes or by investing in a different asset. Therefore, if the rental income is less than the opportunity cost, it would not be profitable for the landlord to rent out the land.

A Landlord Will Supply Her Land for Rental Only If