Economic Rent and the Value of Land

Svend Rasmussen ()
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Svend Rasmussen: University of Copenhagen

Chapter 16 in Production Economics, 2013, pp 181-189 from Springer

Abstract: Abstract The concept of fixed production factors was introduced and discussed in Chap. 12. The main result is that production factors become fixed when it does not pay for the firm to buy more, because the purchase price is higher and the sales price is lower than the internal value of the production factor to the firm. The larger the difference is between purchase and sales price, the higher the probability that a production factor will become a fixed factor.

Keywords: Production Factor; Demand Curve; Sales Price; Purchase Price; Marginal Land (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-642-30200-8_16

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DOI: 10.1007/978-3-642-30200-8_16

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