Question

Briefly explain the ricardian theory of rent? ​

Answer 1

Answer:

Ricardo defined rent as “that portion of the produce of the earth which is paid to the landlord for the use of the original and indestructible powers of the soil.” In his theory, rent is nothing but the producer's surplus or differential gain and it is found in land only.

Answer 2

in the above scheduled C grade land is a marginal land or no rent land where the cost of production is equal to revenue the cost of production of a bag of food grains of C grade land is rupees 40 (46000 / 150) hence A grade land yeilds a surplus of 100 bags of food grains or Rs 4000 40 * 100 similarly B grade land yeilds a surplus of 50 bags of food grains or Rs 2000