...might not come from no-rent land. The normal cost of a product is regulated by " the quantity of labor bestowed on its production on that quality of land,...with that portion of capital which pays no rent," or, more briefly, " by the productiveness of the portion of capital last employed on the land," entirely...

...production determined by capital and labour inputs required by the marginal land. To quote Ricardo: 'Corn is not high because a rent is paid, but a rent is paid because corn is high'.3 To the passage stating that 'rent does not and cannot enter in the least degree as a component...

...that the price of corn determines the level of rent and not vice versa. As Ricardo (p. 74) observed: 'Corn is not high because a rent is paid, but a rent is paid because corn is high; and it has been justly observed, that no reduction would take place in the price of corn, although...

...employment of two equal quantities of capital and labor." Rent is not part of the cost of production, and "corn is not high because a rent is paid, but a rent is paid because corn is high." To demonstrate the process of rent formation, Ricardo starts out with the model of a new country, where...

...political message to Ricardo's conclusion that because rent reflected differential labor productivity, 'Corn is not high because a rent is paid, but a rent is paid because corn is high' [321). Only technical progress, or free trade to allow use of high quality land abroad, could reduce...

...employed in the production of the last portion obtained, and not because a rent is paid to the landlord. The value of corn is regulated by the quantity of...is paid, but a rent is paid because corn is high; and it has been justly observed, that no reduction would take place in the price of corn, although...

...depend on the difference in the quality of these two portions of land" (ibid.). Since in Ricardo's view "the value of corn is regulated by the quantity of...with that portion of capital, which pays no rent," the famous dictum follows: "Corn is not high because a rent is paid, but a rent is paid because corn...

...1953; reprint, 1986), 96-99. 65. This is the origin of Ricardo's phrase: "Corn is not high [in price] because a rent is paid, but a rent is paid because corn is high [in price]." By adjusting for the fact that Ricardo equated cost of production with price, we can understand...

...employed in the production of the last portion obtained, and not because a rent is paid to the landlord. The value of corn is regulated by the quantity of...is paid, but a rent is paid because corn is high." (ibid., p. 74). "Raw material enters into the composition of most commodities, but the value of that...

...employed in the production of the last portion obtained, and not because a rent is paid to the landlord. The value of corn is regulated by the quantity of...is paid, but a rent is paid because corn is high; and it has been justly observed by Mr Malthus, that no reduction would take place in the price of corn,...