What characteristic of land indicates that its supply is limited?

Land is a unique factor of production that is characterized by its fixed supply. Unlike other factors like labor or capital, which can be increased or decreased based on demand and production needs, the total amount of land available for use does not change; it is essentially a finite resource. This fixed nature indicates that regardless of the demand for land, the supply remains constant within a given area.

As a result, the limited supply of land contributes to its value in the economy, as competition for this fixed resource can drive up prices. This characteristic is fundamental to understanding concepts like land use, zoning laws, and real estate markets, and it emphasizes how land as an economic resource is treated differently from others that can be adjusted or expanded.

The other characteristics presented reflect different aspects of land but do not capture its fundamental limitation in supply. For instance, while land may have multiple uses (which relates to its versatility), and while it incurs costs when developed or used, these factors do not negate the intrinsic limitation of land supply.