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
Economics
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A good or service that is forgone by choosing one alternative over another is called a(n):
a. explicit cost. b. opportunity cost. c. historical cost. d. accounting cost.
Economics
If the U.S. real exchange rate appreciates, U.S. exports to Europe
a. and European exports to the U.S. both rise. b. and European exports to the U.S. both fall. c. rise, and European exports to the U.S. fall. d. fall, and European exports to the U.S. rise.
Economics