Question

To an individual firm or landowner, land rents do not appear to be a surplus because

A. a given parcel of land has alternative uses, and rent represents a real cost of production.

B. landowners are, politically and economically, a powerful and well-organized group.

C. land is a productive resource, like the other resources.

D. they do not understand that the supply of land, in total, is perfectly inelastic.

Answer 1

The land rents do not appear to be a surplus for an individual firm because:-

A given parcel of land has alternative uses, and rent represents a real cost of production

option(A)