The Theory of Land Rent Holds That

Multiple Choice

The theory of land rent holds that

A) all plots of land are identical.
B) all land yields a positive rent return.
C) rent on any piece of land will equal the difference between the cost of producing the output on that land and the cost of producing it on marginal land.
D) competition for superior plots of land will force the rent on those lands to a marginal return of zero.