Homework Answers
Option A
An economic rent is the excess amount paid for the resource
against the equilibrium level or socially optimal level. The
economic rent is depended upon the elasticity of supply of that
good or service. If the supply is inelastic then market will pay
excess amount for that and that excess amount is nothing but the
economic rent.
The land is an example of inelastic supply because it is fixed in
nature and can not be produced. As the demand rises then the
surplus for land resource will be higher and that means the
economic rent will rise.
If the supply is infinitely inelastic then all the amount paid will be economic rent of that factor.
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45. Under what circumstances will all of the payment to a factor of production be economic...
3. Referring to the graph above, what can you conclude about the elasticity of the supply...
3. Referring to the graph above, what can you conclude about the elasticity of the supply curve S, in comparison to supply curve $,7 a Supply curve S, is more inelastic than supply curve S b. Supply curve S is more elastic than supply curve S c. Both curves have the same degree of clasticity d. Supply curve S, is infininely elastic, and supply cuve S, is infinitely iselastie e. There is not enough information to answer the question. 36....
Economic rent is defined as the a)amount by which the payment to a factor of production...
Economic rent is defined as the a)amount by which the payment to a factor of production exceeds the supplier's opportunity cost. b)amount landlords charge to tenants. c)difference between total revenue and implicit costs.
1. Under the perfectly competitive market structure, the demand curve of an individual firm is [ Select...
1. Under the perfectly competitive market structure, the demand curve of an individual firm is [ Select ] ["downward sloping", "unit-elastic", "perfectly inelastic", "perfectly elastic"] meaning that the demand curve is also the [ Select ] ["Marginal Cost curve", "average cost", "marginal revenue = Marginal costs", "marginal revenue curve"] 2. With a perfectly competitive firm the supply curve is: a) Marginal Product b) the marginal cost curve above the Average fixed Cost curve c) it has...
Consider the demand curve of the form Q = a - bP. If a is a...
Consider the demand curve of the form Q = a - bP. If a is a positive real number, and b = 0, then demand is (please explain) A) completely inelastic. B) inelastic, but not completely. C) unit elastic. D) elastic, but not infinitely.
19. Suppose that a more efficient way to produce a good is discovered, thus lowering production...
19. Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause a. no change in the supply curve, only a change in price b. a decrease in supply (a leftward shift of the supply curve) c. a movement up the supply curve d. a movement down the supply curve. e. an increase in supply (a rightward shift of the supply curve) If the quantity demanded changes substantially with...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________...
Suppose that the price elasticity of demand of a good is -3. Its demand is _________ and the percentage change in its quantity demanded is ________ than the percentage change in its price. A. Elastic: Smaller B. Elastic: Greater C. Inelastic: Smaller D. Inelastic: Greater Which of the following is not a determinant of the price elasticity of demand? A. Availability of substitutes B. Degree of necessity C. Cost relative to income D. Availability of inputs With a(n) ______ demand,...
please finish all questions have been informed that the price is less than 1. To increase total revenues, 9. You...
please finish all questions
have been informed that the price is less than 1. To increase total revenues, 9. You are the sales manager for a software company elasticity of demand for your most anular software is less than you should: A. Increase the price of the software B. Decrease the price of the software C. Hold the price of the software constant D. Increase the supply of the software 10. Which of the following factors will make the demand...
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per...
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per pound (dollars) a 1.00 0.50 0 1 7 2 3 5 6 Quantity of Ground Beef (millions of pounds per year) 34. As shown in Exhibit 3A-1, if the quantity supplied is 6 million pounds of ground beef per year, the result is: a. overproduction. b. inefficiency. c. deadweight loss. d. all of the above are true. e. none of the above are true....
A monopoly has A. A perfectly elastic demand curve B. A perfectly elastic supply curve C....
A monopoly has A. A perfectly elastic demand curve B. A perfectly elastic supply curve C. An inelastic demand curve D. less elastic demand curve than a competitive firm
3. Referring to the graph above, what can you conclude about the elasticity of the supply curve S, in comparison to supply curve $,7 a Supply curve S, is more inelastic than supply curve S b. Supply curve S is more elastic than supply curve S c. Both curves have the same degree of clasticity d. Supply curve S, is infininely elastic, and supply cuve S, is infinitely iselastie e. There is not enough information to answer the question. 36....
19. Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause a. no change in the supply curve, only a change in price b. a decrease in supply (a leftward shift of the supply curve) c. a movement up the supply curve d. a movement down the supply curve. e. an increase in supply (a rightward shift of the supply curve) If the quantity demanded changes substantially with...
please finish all questions
have been informed that the price is less than 1. To increase total revenues, 9. You are the sales manager for a software company elasticity of demand for your most anular software is less than you should: A. Increase the price of the software B. Decrease the price of the software C. Hold the price of the software constant D. Increase the supply of the software 10. Which of the following factors will make the demand...
Exhibit 3A-1 Comparison of Market Efficiency and Deadweight Loss LA 4.000 3.50 3.00 50 Price per pound (dollars) a 1.00 0.50 0 1 7 2 3 5 6 Quantity of Ground Beef (millions of pounds per year) 34. As shown in Exhibit 3A-1, if the quantity supplied is 6 million pounds of ground beef per year, the result is: a. overproduction. b. inefficiency. c. deadweight loss. d. all of the above are true. e. none of the above are true....
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