An important feature of land is that it
-
A.
has an elastic supply -
B.
is an active factor of production -
C.
is heterogenous in nature -
D.
is subject to returns to scale
Correct Answer: Option B
Explanation
Land possesses the following characteristics:
- Free Gift of Nature
- Fixed Quantity
- Land is Permanent
- Land is a Primary Factor of Production
- Land is a Passive Factor of Production
- Land is Immovable
- Land has some Original Indestructible Powers
- Land Differs in Fertility