If a factor of production has no alternative uses, there is no efficiency gain from charging rent for its use.

Name: If a factor of production has no alternative uses, there is no efficiency gain from charging rent for its use.
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Quizplus · Accepted Answer

Charging rent for a factor of production, even if it has no alternative uses, can still lead to efficiency gains by ensuring that it is allocated to those who value it most and are willing to pay for its use, thereby encouraging its optimal utilization.

If a Factor of Production Has No Alternative Uses, There