Suppose you bought 100 acres of farmland, installed an irrigation system, and built a farmhouse. You then

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Suppose you bought 100 acres of farmland, installed an irrigation system, and built a farmhouse. You then rented the property for $5,000 per month. Five years later, you have made no improvements on the land, and you raise the rent to $7,000 per month. Does the rent increase represent pure economic rent? Explain why or why not.

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Economics An Introduction To Traditional And Progressive Views

ISBN: 9780765616685

7th Edition

Authors: Howard J. Sherman, E. K. Hunt, Reynold F. Nesiba, Phillip A. O'Hara, Barbara A. Wiens-Tuers

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