70: The Markets for Land and Capital Flashcards
1
Q
implicit opportunity cost
A
the cost of using land or capital for any given purpose, even in you own it = rental rate
2
Q
elasticity of supply of land
A
relatively inelastic
3
Q
elasticity of demand for land
A
relatively elastic
4
Q
marginal productivity theory of income distribution
A
each factor is paid the value of the output generated by the last unit of that factor in the factor market equilibrium. Explains income distribution among factors
