I. A significant factor generating variations in a land's rent can be where the land is located. (True)

II. Similar to wages and interest, rent is another cost of production for an individual firm. (True)

III. For a piece of land demanded for production of agricultural product there can be no alternative cost. (False, A piece of land is not just demanded for production of agricultural products. First of all, people also demand it to build houses on. A government might also plan to build a highway. Finally, businesses may want to build a factory site or a warehouse. In other words, an opportunity cost that is the forsaken production from the next best use of the resource, rises from alternative uses of land.)

The answer is C