In an input market, economic rent is defined as
a. the total remuneration paid to a factor of production.
b. the minimum amount required to retain a factor of production in its present use.
c. the total cost for a firm of renting land, equipment, and buildings.
d. the extent to which payments to a factor of production exceed the minimum amount required to retain it in its present use.
d
You might also like to view...
Which of the following is the best example of second-degree price discrimination?
a. A car salesperson's attempts to discover and charge the highest price that the customer is willing to pay. b. A sub shop that gives you a half-price sandwich on every sixth visit. c. Manufacturers' use of discount coupons printed in Sunday newspapers. d. Polaroid cameras and film.
In a two-good economy, the price of video games is $40 and the price of energy drinks is $2. If the annual output of this economy is 100 video games and 500 drinks, the GDP is ________
A) $50,080 B) $25,200 C) $5,000 D) $20,200 E) none of the above
For a demand schedule, which of the following is held constant?
A) relative prices B) quantity demanded C) quality of the good D) nominal prices
Exhibit 7-9 Cost schedule for firm X OutputQuantity Total FixedCost Total VariableCost 0 $100 $ 0 1 100 50 2 100 84 3 100 108 4 100 127 5 100 150 As shown in Exhibit 7-9, the average total cost of producing 5 units is:
A. $20. B. $30. C. $50. D. $250.