Suppose a farmer in a perfectly competitive agricultural industry rents land that is uniquely productive in the production of a certain crop. In the long run
A) the owner of the land receives economic rent while the farmer earns zero economic profit.
B) the owner of the land earns zero economic profit while the farmer receives economic rent.
C) both the farmer and the owner of the land receive economic rent.
D) neither the farmer nor the owner of the land receive economic rent.
A
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One difference between perfect competition and monopolistic competition is that
A) a perfectly competitive industry has fewer firms. B) in perfect competition, firms produce slightly differentiated products. C) monopolistic competition has barriers to entry. D) firms in monopolistic competition face a downward-sloping demand curve.
Use the concept of present value to explain the inverse relationship between the interest rate and the amount of investment a firm undertakes
What will be an ideal response?
According to Edward Denison, during the 1929-1982 period, real output grew at an annual rate of
a. 1.4 percent. b. 0.6 percent. c. 2.9 percent. d. just below 1 percent. e. exactly one-half percent.
Provide two circumstances where monopoly may offer efficiency advantages over competition