"Economic rent reflects a waste of resources." Do you agree or disagree? Explain
What will be an ideal response?
Disagree. Economic rent is indeed a payment for the use of a resource above its opportunity cost. However, as determined by the demand for the resource, economic rent directs the resource to its highest-valued or most efficient use and thus is not a waste of resources.
Economics
You might also like to view...
Firms undertake multinational operations in order to
A) hire low-wage workers. B) manufacture in nations they have difficulty exporting to. C) obtain necessary factor inputs. D) All of the above
Economics
Suppose a firm has the following total cost function: TC = 100 + 4q2. What is the minimum price necessary for the firm to earn profit? Below what price will the firm shut down in the short run?
What will be an ideal response?
Economics