The Ricardian rent for housing and land is determined according to the compensation principle. Ricardian theory also explains why land uses and different types of households tend to be separated spatially. Since sites go to those offering the highest rent, spatial separation occurs naturally in these markets.

In short, Ricardian theory suggests that land must be priced at each site so that its occupant is charsged for the value of whatever locational advantages exist at that site.

Sorry to bore you guys with my Real Estate Space Market II module. But I feel that the Ricardian theory is a true reflection of our lives.

In making friends, although it is true that you tend to choose friends who offer you certain benefits that other people do not ( I don't mean that kinda "friends-with-benefit"), it is quite expected of you to "pay" for the friendship as well. The more benefits that the friend offers, the closer you are to him/her, and the more you have to "pay" for the friendship. Payments can be made in the form of spending time with that person, helping that person when he/she is in need, listening and offering advice to that person, etc.

You don't repay a friend by backstabbing him/her, bad-mouthing him/her behind his/her back, giving him/her a dressing down (unless its for their own good), etc.

Thats why we should learn to cherish the friends we have, especially those who offer more "locational advantages". And we should be prepared to be charged a higher rent.

I know I'm not the greatest friend in the world, but I'm still learning. And trying to be. Sorry my friends, I will try my best to fulfill the Ricardian theory.