Nature of Competition: Soil Power Rental
There are many kinds of land; farm land , mining sites , deserts , Rocky Mountains , rain forests , Virgin Islands and the like. Some are in use, others not in use, still others of use, and the rest of no use. In the first place, the land is of no use until we cultivate it. We herein call cultivated land “ soil .” Wayside, is there “land” of no use? As always, the answer depends on whom we ask the question of. Some economists, including many of Nobel would propose that the supply of land be “fixed.” Lo and behold, the production function , Y= f(L, K, N) ; the N for “land” is fixed all through the medium run, or per annum in vernacular. On the flipside, the land irrelevant to the GDP is of no use; particularly the GDP in equilibrium ( Y* ) as in IS-LM or AS-AD . Probably the Appalachian Mountains would be a superb example of ab...