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
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The Resolution Trust Corporation was created by the FIRREA in order to
A) manage and resolve insolvent S&Ls. B) build up trust in government regulation. C) regulate the S&L industry. D) purchase large amounts of government debt.
Economic surplus is maximized in a competitive market when
A) demand is equal to supply. B) the deadweight loss equals the sum of consumer surplus and producer surplus. C) marginal benefit equals marginal cost. D) producers sell the quantity that consumers are willing to buy.