Question 1
If the
MRP of land is greater than its price, a firm should
◦ use more land.
◦ use less land.
◦ try to increase the productivity of land.
◦ decrease the price it is willing to pay for land.
Question 2
If land becomes less valuable in residential use than in commercial use
◦ the supply of land available for commercial use should increase and the supply of land for residential use should decrease.
◦ there can be no change in the allocation of land because land is fixed in supply.
◦ there will be no change in the allocation of land, as there is no responsiveness to price changes by suppliers of land.
◦ the supply of land for commercial use will become perfectly inelastic and the supply of land for residential use will become perfectly elastic.
Jan-Dec Global Mean Temperature Over Land and Ocean
Differential Heating of Land and Water
Important Land Ecoregions
Plot of land (Part b)