Chapter 7 Tue Cusscal Scuoor-Dnvtp Rlcenoo

Table 7-1
Rent Measured from the Extensive Margin of Cultivation

PRKE OFWHEIIT RENT DERIVED FROM EACH CRADE OF IAND

PERBUSHEL A B C D E

lnput: $10 $lO $10 $10 $10

Yield: 20 15 10 5 4
(bushel/acre)

$.so 0*
.662/3 $3.33 0*
1.00 10.00 $5.00 0*
2.00 30.00 20.00 $10.00 0*
2.s0 4o.oo 27.50 15.00 $2.50 o*

*Price at which $1O input is made.

0 Cengage Learning 2013

and C will rise to $30, $20, and $10. The reader is urged t0 confirm these num-
bers using the aforementioned method for deriving them.

Table 7-2
Rsnt Measured *om the lntensive Maryin of Cultivation
LAND GRADE A

Price of Wheat Marginal

per Bushel lnput Output Output Rent

$i0 2A 0
$.s0
.662/t 2A 35 15 $3.33

1.00 30 45 10 15.00

?.00 40 50 s 60.00

2.50 50 54 4 85.00

LAND GRADE B LAND GRADE C

Marginal Marginal
lnput Output Output Rent lnput Output Output Rent

.662/z $10 15 0

1.00 2A 25 10 $5.00 $10 io 0

2.oo 30 30 s 3o.oo 2a 15 5 $10'oo

2.50 40 34 4 45.00 30 19 4 17 '50