earn more rent. The perspective of the residual theory of land value is that the 3 mobile factors have to get paid first, in order to keep them from running away if they don’t get paid an amount equal to what they could earn elsewhere, something that land cannot do. 4.3 The bid-rent is the maximum rent that a potential user would bid or be willing to pay, for a site or location. This bid-rent is essentially the same thing as the residual value. Each potential user of land has a bid-rent curve, which…
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