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To Say That Land Rent Performs No Incentive Function Means

Question 12

Multiple Choice

To say that land rent performs no incentive function means that


A) higher rental payments will not bring forth a larger quantity of land.
B) rent is not a cost to specific firms, but it is a cost from the standpoint of the economy as a whole.
C) rent does not allocate land in terms of productive efficiency.
D) rent tends to allocate land into the most productive uses.

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