Which of the following is correct?
A) Although land has no production cost from society's viewpoint, rental payments are costs to individual producers.
B) Land rent is not a cost to either society or individual producers.
C) Although land rent is a cost from society's viewpoint, it is not a cost to individual producers.
D) Land rent is a cost to both society and individual producers.

Question

Quizplus · Accepted Answer

Although land itself does not have production costs from society's viewpoint, the rental payments that individual producers must make to use the land are a cost from their perspective. This is because they must factor in the cost of the rental payments when determining their overall production costs, which can affect their profits and pricing decisions.

Which of the Following Is Correct