Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Economic Rent
- Economic rent is difference between what firms are willing to pay for the input less the minimum amount required to obtain it.
* An Example
- There are two firms A & B
- Both are having their own land
- A is located on the river which lowers A's shipping cost by $10,000 as compared to B - The demand for A's river location will increase price of A's land to $10,000
- Economic rent = $10,000
- Economic rent increases
- Economic profit of A = 0
Firms Earn Zero Profit in Long-Run Equilibrium * With the fixed input such as a unique location, difference between cost of production (LAC = 7) and price ($10) is value or opportunity cost of the input and represents economic rent from the input.
* If opportunity cost of input (rent) is not taken into consideration it may appear that the economic profits exist in long run.
What is significance of methodological economics...
different types of production funtion and curve given by different economist
Production without capital is hard for us even to imagine. Nature cannot furnish goods and materials to man unless he has the tools and machinery for mining farming forestry fishin
please may you explain this concept
ROLE OF INFRASTRUCTURE IN THE ECONOMY: Economic Infrastructure produces services that directly facilitate and are basic to the carrying out of a wide variety of economic activ
using ? tools of economic highlight on comsumption
Nile.com, the online bookstore, wants to increase it''s total revenue. One strategy is to offer a 10% discount on every book that sells. Nile.com knows it''s customers can be divid
4) The prevention of major swings in economic activity can be handled most easily by the A. household sector B. business sector C. financial sector D. government sector Explain
example of marginal opportunity cost
Non-Tradable:Some products can't be transported over long distances or otherwise sold to consumers from far-off locations. These products (including some goods as well as most serv
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd