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Why is rent earned by land even in the long run ?
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- Land has original and indestructible power
- Land is a man made factor
- Its supply is inelastic in the short run
- Its supply is inelastic in the long run
- Land has original and indestructible power
Correct Option: D
Rent accrues to land which is fixed in supply even in the longer run. It is permanent. In contrast to it is a quasi rent, introduced by Marshall, which is inelastic in the short run, but elastic in the longer run.
