Which of the following situations will tend to feature economic rents that are much higher than the resource's opportunity cost?
a. Unskilled day labor on a construction site
b. Generic lumber used in the construction of a commercial building.
c. Wheat grown by one of the thousands of wheat farmers in the U.S. and bought by Kellogg to produce breakfast cereal
d. An otherwise unemployable software engineer possessing unique knowledge required to resolve a particular company's latest software bug.
d
You might also like to view...
The demand for salt is probably more inelastic at generally prevailing prices than the demand for potatoes because
A) potatoes require salt but salt does not require potatoes. B) salt has long been a favorite target for taxation. C) salt is cheap relative to most users' incomes and has few good substitutes. D) salt will keep longer than potatoes before spoiling. E) there is so much potential salt in the ocean.
Why do economists regard who is legally responsible for paying the tax to be irrelevant?
What will be an ideal response?