Although the long-run equilibrium price of oil is $80 per barrel, some producers have much lower costs because their oil reserves are relatively close to the surface and are easier to extract
If the low-cost producers have a minimum LAC equal to $20 per barrel, then the difference ($60 per barrel) is: A) an above-normal economic profit.
B) an economic rent due to the scarcity of low-cost oil reserves.
C) a profit that will go to zero as new oil producers enter the market.
D) none of the above
B
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Scott used $4,000,00 . from his savings account that paid an annual interest of 5% to purchase a hardware store. After one year, Scott sold the business for $4,100,000 . His accountant calculated his profit to be:
a. $300,000 b. $100,000 c. $80,000 d. $20,000
Which of the following lists includes only capital resources (and therefore no labor or land resources)?
A. An ice arena; a professional hockey player; hockey uniforms. B. The owner of a new startup firm; a chemistry lab; a researcher. C. A hydroelectric dam; water behind the dam; power lines. D. Autos owned by a car rental firm; computers at the car rental agency; the vans that shuttle rental customers to and from the airport.