Suppose that the MRP of the sixth acre of land is $200 and the rent paid on that land is $200.We can say that

A) not enough land is being rented.
B) just enough land is being rented.
C) too much land is being rented.

Question

Tomas Urbina · Accepted Answer

Final Answer : B, Explanation :  When the rent paid equals the MRP of the land, it means that the tenant is using the land efficiently and obtaining the maximum benefit from it. Therefore, just enough land is being rented. If the rent paid was less than the MRP, there would be an underutilization of the land, while if the rent paid was more than the MRP, it would not be profitable for the tenant to rent the land.

Suppose that the MRP of the sixth acre of land is $200 and the rent paid on that land is $200.We can say that

A) not enough land is being rented.
B) just enough land is being rented.
C) too much land is being rented.

Definitions

Learning Objectives

Learning Objectives

Related questions

Suppose that the MRP of the sixth acre of land is $200 and the rent paid on that land is $200.We can say thatA) not enough land is being rented.B) just enough land is being rented.C) too much land is being rented.

Definitions

Learning Objectives

Learning Objectives

Related questions

Suppose that the MRP of the sixth acre of land is $200 and the rent paid on that land is $200.We can say that

A) not enough land is being rented.
B) just enough land is being rented.
C) too much land is being rented.