markitect-main/examples/infospace-with-history/output/entities/monopoly-price-of-land.md

Monopoly Price of Land

Definition

The price paid for the use of land that exceeds what would be paid under competitive conditions, arising from the landlord's exclusive control over a particular piece of land. This price is determined by what the tenant can afford to pay rather than by the cost of providing the land.

Source Chapter

Book I, Chapter 11

Context

Smith argues that rent is essentially a monopoly price because it is not determined by the cost of providing the land but by what the tenant can afford to pay based on the land's productive capacity. This concept is crucial for understanding how rent differs from other forms of economic returns.

Economic Domain

Distribution

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