Profits in excess of the opportunity cost of capital that a business owner gets by introducing a new technology, organisational form or marketing strategy is known as: a) Creative rents. b) Innovation rents. c) Capital rents. d) Opportunity rents. e) None of the above options are correct.

Profits in excess of the opportunity cost of capital that a business owner gets by introducing a new technology, organisational form or marketing strategy is known as: a) Creative rents. b) Innovation rents. c) Capital rents. d) Opportunity rents. e) None of the above options are correct.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 19SQ

See similar textbooks

Related questions

Q: A ON JENN 28 24 20 16 12 0 P D1 S D2 048 8 12 16 20 24 Q a) substitutes. b) complements. c) inferior…

A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…

Q: This question requires that you use the law of motion of capital, the production function, and the…

A: The Solow Model of economic growth or the neo classical model of growth This model is also known as…

Q: Economics The free-rider problem associated with a good refers to the _____ cost of exclusion. In…

A: Free rider problem refers to the economic problem where it is difficult to exclude an individual…

Q: part-a: What are the components of the M1 money supply? What are the components of the M2 money…

A: M1 money supply includes 2 things: - Currency : the currency notes in the hands of the public -…

Q: 9. An injection - molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in…

A: Economics life is the normal timeframe during which a resource stays helpful to the typical…

Q: Suppose I live in a hypothetical country, Pandesia, where there is 100% reserve banking. I deposit…

A: Given information Initial deposits=$1000 Required reserves=100% 100% reserve banking is known as…

Q: There are potential gains from trade, according to the Ricardian two-country two-good model, but…

A: Building and analyzing an international economic model is a traditional method for presenting the…

Q: Q4. Consider a Cournot competition model with two firms, 1 and 2. They produce identical goods in…

A: In a Cournot Duopoly both firms simultaneously optimize their outputs taking other firm's output as…

Q: When shifts occur to the short-run AS there is no self-correcting mechanism that will restore…

A: According to the idea of the short run, at least one input will be fixed while the others will be…

Q: What are the economic arguments in favour of the policy of protection? Write any three arguments.

A: The strategy used by businesses to defend their own nations from foreign competition is known as…

Q: In an economy, investment increased by 1,100 and as a result of it, income increased by 5,500. Had…

A: In economics, the link between consumer spending and the different factors that influence it is…

Q: Asymmetric information and/or imperfect information can cause two forms of market failure: 1)…

A: Adverse Selection in economics refers to that phenomena when in any transaction between two people ,…

Q: When the official dollar price of a foreign currency is set below its

A: Exchange Rate: We know that The exchange rate represents how much of a currency is needed to…

Q: Suppose that the hourly wages in 1960 and 2002 were respectively 7.21 and 8.65 dollars per hour. If…

A: Consumer Price Index The Consumer Price Index is an instrument by which we can measure the inflation…

Q: D Question 27 Which organization hosts a nationwide network of Volunteer Centers? O Relay Council on…

A: Organization refers to the grouping or coming together of people who have a common objective or…

Q: Suppose you are one of two producers of aluminium. You (firm 1) and your competitor (firm 2)…

A: When the two firms simultaneously optimize their outputs , each firm maximizes its profits taking…

Q: What precautions should be taken while estimating national income by income method? Or What…

A: The total income generated by a nation's economic activities over the course of a year is known as…

Q: QP TC 0 1 2 3 4 5 6 a. b. C. 13 12 11 10 9 8 7 10 13 17 22 28 36 45 If this were, a competitive…

A: Perfect market Here the supply curve is the curve depicting how much production of manufacturing…

Q: John has got a Billie Eilish concert ticket for $600. However, when he arrived at the concert venue,…

A: The price consumer pays for good based on the maximum willingness of consumer to pay for good.

Q: 4. A retail outlet is being designed in a mall in Baguio. For this outlet, the installed fiberglass…

A: The present value of a payment F in the future is given as: P = F(1 + R)tWhere: P : Present valueF:…

Q: Draw and interpret a “Keynsian cross” graph for the following situations. See the model in ch. 12.…

A: Keynesian cross It expresses a relationship between total spending and production. It shows how, as…

Q: You and your partner are choosing how much effort to put towards a group project for a course . You…

A: There are two players : Player y & Player p Player Y payoff = 60yp - y3 Player P payoff = 60yp…

Q: What are the economic effects of membership of the European Union? Discuss in the context of member…

A: European Union:- It aims to free movement of goods and people across these member nations and smooth…

Q: discounting in which the stage game is played in each period. Find all pure strategy SPNE. (c)…

A: *Answer: Step: - 1 (a) The NE of the stage game are (L, R) and (R, L). (b) The SPNE of the…

Q: Suppose a person chooses to play a gamble that is free to play. In this gamble, they have a 10%…

A: Insurance is the financial instrument that insurance firms or banks offer or sell a customer in…

Q: The relationship between the price charged and the resulting amount purchased can be shown as the…

A: Price is an important aspect in the decision making process for a buyer while buying any type of…

Q: 25. A busy small business owner is considering purchasing groceries through a premium home delivery…

A: The opportunity cost refers to what a person has to give up in terms of other commodities or…

Q: 2. A bank charges 11% discount on short term loans. Find the sum received by the borrower who…

A: given that, principal sum is Php1.500 interest rate is 11% the time period is from 03 October 2011…

Q: Which range of aggregate supply would represent an economy where prices are rising as output…

A: According to the classical economics, aggregate supply curve is the curve that represents total…

Q: It was found that several of an organization's workers had not been trained and did not know their…

A: At the marketplace, a worker is the person who serves his efforts in producing output from given…

Q: Banks do not take steps to increase security since they believe it is less costly to allow some bank…

A: The financial incentive that motivates someone to take action increases both their benefit and the…

Q: Let's say the Federal Reserve lowers the federal fund rate that is her aim. i. Describe the open…

A: Introduction Federal Reserve: This phrase alludes to the framework through which the federal reserve…

Q: The proceeds of the sale of NZ state owned assets in the 1980's were generally used to Select one:…

A: Anything that will or now has economic worth to a company is considered an asset. In essence, assets…

Q: 1 \ 2 a b c A 2,2 2,1 0,0 B 3,1 3,0 1,3 C 1,3 3,2 3,1 Eliminate…

A: There are two players in the game : Player 1 & Player 2 Strategy Set of Player 1 = { A, B , C }…

Q: Suppose a large corporation produces airplanes in a perfectly competitive industry. The data in the…

A: Below, P price Q quantity C/TC cost/total cost TR total revenue MR marginal revenue MC marginal…

Q: Describe the role of repo rate and reverse repo rate in correcting deflationary gap in an economy.

A: Repo rate is the term used to describe the rate at which commercial banks borrow money by offering…

Q: At which level of income Average Propensity to Save (APS) will be equal to zero and why? What does…

A: The consumer's propensity to save is the proportion of total income or of an increase in income that…

Q: 1. Let F(K, AN) denote a production function that satisfies constant returns to scale. For an…

A: Given production function Y=f(K,AN) Labor augmented production function Y--- output K--- capital…

Q: $1,900 D $1,000; $1,000 $1,200: $1,000 $1,000; $1,200 $1,000 $1,800 g the data given in the table…

A: WHAT IS GDP DEFLATOR? GDP Deflator is also called as GDP Price Deflator or Implicit Price Deflator.…

Q: d) Distinguish between stock and flow variables. Are flow variables related to stock variables and…

A: The development of economic variables is dependent on stock and flow variables. Stock variable…

Q: If Boblandia had a flexible exchange rate, it would cost 5 Bobos to purchase a Canadian dollar. The…

A: If exchange rate is higher than that in equilibrium(flexible exchange rate), supply of the domestic…

Q: An industry has two firms. Firm 1's cost unction is TC1(q1) = 2q1 + 500 and firm 2's cost function…

A: Cournot model is a part of oligopoly market. The firms compete on the basis of output in the Cournot…

Q: Give two examples of elasticity information for two particular goods: one with an elastic demand and…

A: The price elasticity of demand measures the change in demand of a good or service in response to a…

Q: True or false? Basic economic concepts can be used to understand the pricing of products.

A: The basic economic concepts are money, allocation of resources, demand and supply, production,…

Q: b. Given the following information of Good A and Good B. Price of Good A (RM) 2 4 6 8 10 12 Quantity…

A: Elasticity of demand is defined as type responsiveness of the quantity demand when price of the…

Q: Demand for motor vehicles exhibits a positive income elasticity. This means that there are no close…

A: Income elasticity: It refers to the demand of the people which changes with the income. The increase…

Q: THE Blank 1: IS THE PER UNIT COST OF PRODUCTION OBTAINED BY DIVIDING THE TOTAL COST BY THE TOTAL…

A: It is the aggregate money expenditure caused by the firm on every one of the factors to produce a…

Q: Fill in the remaining cells of the following table. Quantity Total Cost Marginal Cost Fixed Cost…

A: In case of short-run average cost functions, the firm incurs two types of costs:-Fixed costs and…

Q: What means supply of money?

A: Meaning of Exchange Rate: The term exchange rate refers to the situation under which a particular…

Q: O Discuss the Neoclassical theory of distribution and show its strengths and weakness.

A: In neoclassical theory, demand and supply simultaneously determine the quantity and factor prices.

Question

Profits in excess of the opportunity cost of capital that a business owner gets by introducing a new technology, organisational form or marketing strategy is known as:

a) Creative rents.
b) Innovation rents.
c) Capital rents.
d) Opportunity rents.
e) None of the above options are correct.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Explanation

VIEW

Answer:

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which of the following sources of low costs is most popular? Group of answer choices Economies of scale "Technology" software Differential access to low-cost inputs Learning curves
Opportunity cost is best defined as Select one: a. the amount given up when choosing one activity over the next best alternative. b. the amount given up when choosing one activity over all other alternatives. c. the amount that is given up when choosing an activity that is not as good as the next best alternative d. the opportunity to earn a profit that is greater than the one currently being made.
The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential earnings as a salaried worker = $55,000 Annual lease on building = $23,000 Annual revenue from operations = $320,000 Payments to workers = $130,000 Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Creamy Crisp Donut Company Multiple Choice has lower explicit costs, than implicit costs. is earning a normal profit but not an economic profit. is earning an economic profit. is suffering an economic loss, when implicit costs are considered.
At the profit maximizing level of input use, Which of the following are true? (i) MVP=0 (ii) MVP=MIC (iii) MPP=MVP (iv) MVP=MVIC
With the aid of appropriate diagrams describe what each of the following abatement cost curves are, who is likely to create them, who is more likely to use them and where relevant their advantages and disadvantages against each other: a) Marginal abatement cost curve.b) Expert derived abatement cost curve.c) Model derived abatement cost curve.
Economic cost can best be defined as: Select one: a) All costs excluding labour costs b) Any obligation to labour or material suppliers c) All costs exclusive of payments to fixed factors of production d) Compensations which must be recieved by factor of production owners to insure their continued supply e) Any contractual obligations which results in a flow of money expenditures from an enterprise to factor of production suppliers
Opportunity cost refers to A) explicit costs+ implicit costs B) Time costs C) Money costs D) None of the above
Which of the following is an explicit cost? The opportunity cost of an owner/entrepreneur’s time invested in the firm. The opportunity cost of the money the business owner/entrepreneur has invested in the firm. The wages paid to workers. None of the above
Hello! Would you be able to professionally assess my answer for accuracy to the following question below? Thank you in advance! Question You won a ticket to a hockey playoff game by having your name drawn from a hat at a charity event. You were excited about going, but on the day of the game, a major snowstorm has hit and conditions are miserable. Would you be more likely to go if you had bought the ticket yourself instead of winning it? Relate your answer to opportunity costs and sunk costs. My Answer: If I bought the hocky playoff ticket myself and decided to stay home and not go to the game due to a major snowstorm and the resulting conditions, the opportunity cost would be watching the hockey playoff game in person. Because the ticket is already purchased, if I would be unable to resale the ticket (it may be quite difficult to resale from home the day of the game, particularly during a major storm), the price of the ticket would be a sunken cost, a past expenditure unable to be…
Like Loyola, many universities have either a college football program or a basketball program. Relatively few have both. This indicates the presence of A. economies of scope. B. diseconomies of scope. C. returns to scale. D. the law of diminishing marginal returns. E. None of the above.
Everything U Want Stores is trying to decide whether to keep or drop the hardware department in its megastore. If the department is dropped, the manager will be fired. The manager's salary, in relation to the decision to keep or drop the department, is Group of answer choices sunk and therefore not relevant an opportunity cost and therefore not relevant avoidable and therefore relevant the same for both alternatives and therefore not relevant
Before the point of diminishing marginal returns, marginal cost will be increasing. Group of answer choices True False