In analyzing land rent, David Ricardo constructed a model based on

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Ricardo's model was based on the assumption that the supply of land is perfectly inelastic, meaning that the quantity of land cannot be increased in response to changes in demand. This leads to a situation where rent is determined by the marginal productivity of the least productive land in use, and landowners are able to capture a share of the economic surplus generated by productive activities on their land. The other choices are not consistent with Ricardo's model of land rent.

In Analyzing Land Rent, David Ricardo Constructed a Model Based