Suppose that the marginal revenue product of the fourth acre of land is $180 and the rent paid on that land is $200 an acre.We can say that

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The marginal revenue product of the fourth acre of land is $180, meaning that the additional output that can be produced from using the fourth acre of land is worth $180. However, the rent paid on that land is $200, which is higher than the marginal revenue product. This implies that the cost of using the land is higher than the additional output it generates, indicating that too much land is being rented. Therefore, the best choice is (C) too much land is being rented.

Suppose That the Marginal Revenue Product of the Fourth Acre