The principle of proportionality states:
A) the current market value is based on the present value of the future benefits of ownership
B) the maximum value of a property is equal to the cost of acquiring an equally desirable property
C) over time, competitive forces tend to reduce abnormally high profits
D) for each property there is an optimum combination of improvements and land that maximizes value

Question

Quizplus · Accepted Answer

The principle of proportionality refers to the optimal combination of land and improvements that maximizes the property's value.

The Principle of Proportionality States