11. Because land is in strictly fixed supply, its price is demand determined—that is, its price is determined exclusively by what households and firms are willing to pay for it. The return to any factor of production in fixed supply is called a pure rent. A firm will pay for and use land as long as the revenue earned from selling the product produced on that land is sufficient to cover the price of the land. The firm will use land up to the point at which MRPA = PA, where A is land (acres).