Allocation of land in economy to its most productive uses

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Why is rent not needed to make land available, but very useful in guiding the allocation of land in the economy to its most productive uses? (In your answer, assume that all units of land are of uniform quality of homogeneous. While this assumption is factually untrue, making it helps to understand the role of diminishing marginal productivity in the allocation of units of the resource to their most productive user.)

Reference no: EM131174592

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