The idea of "economic rent" can be applied to resources other than land. What is economic rent? The additional "pay" the owner of a resource can earn greater than its "supply price." It's when supply is greater than demand. ○ It applies to apartment rent in large cities where rents are outrageous. OIt refers to ridiculously high taxes on entrepreneurs.
The idea of "economic rent" can be applied to resources other than land. What is economic rent? The additional "pay" the owner of a resource can earn greater than its "supply price." It's when supply is greater than demand. ○ It applies to apartment rent in large cities where rents are outrageous. OIt refers to ridiculously high taxes on entrepreneurs.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter18: Pricing The Factors Of Production
Section: Chapter Questions
Problem 4TY
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![The idea of "economic rent" can be applied to resources other than land. What is economic rent?
O The additional "pay" the owner of a resource can earn greater than its "supply price."
It's when supply is greater than demand.
|0|0|0
O It applies to apartment rent in large cities where rents are outrageous.
OIt refers to ridiculously high taxes on entrepreneurs.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3614a9ba-5d2e-463c-b206-803d5163a55b%2Fe9c8f447-4958-4297-9d2e-64796242f28c%2Fazrrka4_processed.png&w=3840&q=75)
Transcribed Image Text:The idea of "economic rent" can be applied to resources other than land. What is economic rent?
O The additional "pay" the owner of a resource can earn greater than its "supply price."
It's when supply is greater than demand.
|0|0|0
O It applies to apartment rent in large cities where rents are outrageous.
OIt refers to ridiculously high taxes on entrepreneurs.
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