In sophisticated analysis of rent differences
A)quality of land is assumed away.
B)quality of land is recognized and considered.
C)rates of return are assumed away.
D)returns on land and capital are assumed to be similar.

Question

Quizplus · Accepted Answer

In sophisticated analysis of rent differences, the quality of land is recognized and considered. This means that the variations in rent levels are attributed to the quality of land, which can include factors such as location, accessibility, soil fertility, and topography. Therefore, choice B is the correct answer. The other options are incorrect because they assume away important factors that affect rent differences, such as the quality of land and rates of return.

In Sophisticated Analysis of Rent Differences