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Economic Rent and the Value of Land

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Part of the book series: Springer Texts in Business and Economics ((STBE))

Abstract

The concept of fixed production factors was introduced and discussed in Chap. 12. The main result is that production factors become fixed when it does not pay for the firm to buy more, because the purchase price is higher and the sales price is lower than the internal value of the production factor to the firm. The larger the difference is between purchase and sales price, the higher the probability that a production factor will become a fixed factor.

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Correspondence to Svend Rasmussen .

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© 2013 Springer-Verlag Berlin Heidelberg

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Rasmussen, S. (2013). Economic Rent and the Value of Land. In: Production Economics. Springer Texts in Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-30200-8_16

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  • DOI: https://doi.org/10.1007/978-3-642-30200-8_16

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-30199-5

  • Online ISBN: 978-3-642-30200-8

  • eBook Packages: Business and EconomicsEconomics and Finance (R0)

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