The relative economic rent from the following inputs.

Question

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Answer 1

Question

Chapter 18, Problem 1TY

To determine

To Find: The relative economic rent from the following inputs.

Expert Solution & Answer

Answer to Problem 1TY

(A & B) petroleum and championship horserace include relatively large economic rent in their earrings.

Explanation of Solution

Economic rent is not the same for everyone as it depends upon the purpose of the usage of land and the area of land that is rented by the owner. Economic rent depends upon the availability of land in the market.

When a firm produces nuts and bolts, it needs a relatively smaller portion of land to build a factor. In contrast, petroleum and a champion horserace need a large portion of land to build the plant and to make an activity, such that petroleum needs heavy plants and machinery, and a champion horserace needs a large field to use for horserace. Land for nuts and bolts can be available easily in the market, but the land for petroleum plants and championship horserace is difficult to find as it needs a suitable place to make economic activity.

Therefore, there is a larger supply of land for nuts and bolts as compared to the other two activities. As a result, a producer of nuts and bolts needs to pay lower economic rent, and the producer of petroleum and champion horserace needs to pay higher economic rent.

Economics Concept Introduction

In the market, economic rent refers to the income gain earned by providing own land to any other individual for use. The landowner will collect income in the form of rent, and this rental income is the only income that can be generated from the land.

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Students have asked these similar questions

Which of the following inputs do you think include relatively large economic rents in their earnings? a. Nuts and bolts b. Petroleum c. A champion racehorse

Explain the following statement: “Profits that more than cover the cost of capital are known as economic rents.”

Economists Conclude that a tax on the revenues of firms will be shifted in part to consumers of the products of those firms in the form of higher prices. However, they believe that a tax on the rent of land usually cannot be shifted and must be paid entirely by the landlord. What explains the difference?

Answer 2

Question

Chapter 18, Problem 1TY

To determine

To Find: The relative economic rent from the following inputs.

Expert Solution & Answer

Answer to Problem 1TY

(A & B) petroleum and championship horserace include relatively large economic rent in their earrings.

Explanation of Solution

Economic rent is not the same for everyone as it depends upon the purpose of the usage of land and the area of land that is rented by the owner. Economic rent depends upon the availability of land in the market.

When a firm produces nuts and bolts, it needs a relatively smaller portion of land to build a factor. In contrast, petroleum and a champion horserace need a large portion of land to build the plant and to make an activity, such that petroleum needs heavy plants and machinery, and a champion horserace needs a large field to use for horserace. Land for nuts and bolts can be available easily in the market, but the land for petroleum plants and championship horserace is difficult to find as it needs a suitable place to make economic activity.

Therefore, there is a larger supply of land for nuts and bolts as compared to the other two activities. As a result, a producer of nuts and bolts needs to pay lower economic rent, and the producer of petroleum and champion horserace needs to pay higher economic rent.

Economics Concept Introduction

In the market, economic rent refers to the income gain earned by providing own land to any other individual for use. The landowner will collect income in the form of rent, and this rental income is the only income that can be generated from the land.

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Answer 3

Question

Chapter 18, Problem 1TY

To determine

To Find: The relative economic rent from the following inputs.

Expert Solution & Answer

Answer to Problem 1TY

(A & B) petroleum and championship horserace include relatively large economic rent in their earrings.

Explanation of Solution

Economic rent is not the same for everyone as it depends upon the purpose of the usage of land and the area of land that is rented by the owner. Economic rent depends upon the availability of land in the market.

When a firm produces nuts and bolts, it needs a relatively smaller portion of land to build a factor. In contrast, petroleum and a champion horserace need a large portion of land to build the plant and to make an activity, such that petroleum needs heavy plants and machinery, and a champion horserace needs a large field to use for horserace. Land for nuts and bolts can be available easily in the market, but the land for petroleum plants and championship horserace is difficult to find as it needs a suitable place to make economic activity.

Therefore, there is a larger supply of land for nuts and bolts as compared to the other two activities. As a result, a producer of nuts and bolts needs to pay lower economic rent, and the producer of petroleum and champion horserace needs to pay higher economic rent.

Economics Concept Introduction

In the market, economic rent refers to the income gain earned by providing own land to any other individual for use. The landowner will collect income in the form of rent, and this rental income is the only income that can be generated from the land.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 1TY

To determine

To Find: The relative economic rent from the following inputs.

Expert Solution & Answer

Answer to Problem 1TY

(A & B) petroleum and championship horserace include relatively large economic rent in their earrings.

Explanation of Solution

Economic rent is not the same for everyone as it depends upon the purpose of the usage of land and the area of land that is rented by the owner. Economic rent depends upon the availability of land in the market.

When a firm produces nuts and bolts, it needs a relatively smaller portion of land to build a factor. In contrast, petroleum and a champion horserace need a large portion of land to build the plant and to make an activity, such that petroleum needs heavy plants and machinery, and a champion horserace needs a large field to use for horserace. Land for nuts and bolts can be available easily in the market, but the land for petroleum plants and championship horserace is difficult to find as it needs a suitable place to make economic activity.

Therefore, there is a larger supply of land for nuts and bolts as compared to the other two activities. As a result, a producer of nuts and bolts needs to pay lower economic rent, and the producer of petroleum and champion horserace needs to pay higher economic rent.

Economics Concept Introduction

In the market, economic rent refers to the income gain earned by providing own land to any other individual for use. The landowner will collect income in the form of rent, and this rental income is the only income that can be generated from the land.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 1TY

To determine

To Find: The relative economic rent from the following inputs.

Expert Solution & Answer

Answer to Problem 1TY

(A & B) petroleum and championship horserace include relatively large economic rent in their earrings.

Explanation of Solution

Economic rent is not the same for everyone as it depends upon the purpose of the usage of land and the area of land that is rented by the owner. Economic rent depends upon the availability of land in the market.

When a firm produces nuts and bolts, it needs a relatively smaller portion of land to build a factor. In contrast, petroleum and a champion horserace need a large portion of land to build the plant and to make an activity, such that petroleum needs heavy plants and machinery, and a champion horserace needs a large field to use for horserace. Land for nuts and bolts can be available easily in the market, but the land for petroleum plants and championship horserace is difficult to find as it needs a suitable place to make economic activity.

Therefore, there is a larger supply of land for nuts and bolts as compared to the other two activities. As a result, a producer of nuts and bolts needs to pay lower economic rent, and the producer of petroleum and champion horserace needs to pay higher economic rent.

Economics Concept Introduction

In the market, economic rent refers to the income gain earned by providing own land to any other individual for use. The landowner will collect income in the form of rent, and this rental income is the only income that can be generated from the land.

Answer 6

Chapter 18, Problem 1TY

To determine

To Find: The relative economic rent from the following inputs.

Expert Solution & Answer

Answer to Problem 1TY

(A & B) petroleum and championship horserace include relatively large economic rent in their earrings.

Explanation of Solution

Economic rent is not the same for everyone as it depends upon the purpose of the usage of land and the area of land that is rented by the owner. Economic rent depends upon the availability of land in the market.

When a firm produces nuts and bolts, it needs a relatively smaller portion of land to build a factor. In contrast, petroleum and a champion horserace need a large portion of land to build the plant and to make an activity, such that petroleum needs heavy plants and machinery, and a champion horserace needs a large field to use for horserace. Land for nuts and bolts can be available easily in the market, but the land for petroleum plants and championship horserace is difficult to find as it needs a suitable place to make economic activity.

Therefore, there is a larger supply of land for nuts and bolts as compared to the other two activities. As a result, a producer of nuts and bolts needs to pay lower economic rent, and the producer of petroleum and champion horserace needs to pay higher economic rent.

Economics Concept Introduction

In the market, economic rent refers to the income gain earned by providing own land to any other individual for use. The landowner will collect income in the form of rent, and this rental income is the only income that can be generated from the land.

Answer 7

Chapter 18, Problem 1TY

To determine

To Find: The relative economic rent from the following inputs.

Answer 8

Expert Solution & Answer

Answer to Problem 1TY

(A & B) petroleum and championship horserace include relatively large economic rent in their earrings.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Economic rent is not the same for everyone as it depends upon the purpose of the usage of land and the area of land that is rented by the owner. Economic rent depends upon the availability of land in the market.

When a firm produces nuts and bolts, it needs a relatively smaller portion of land to build a factor. In contrast, petroleum and a champion horserace need a large portion of land to build the plant and to make an activity, such that petroleum needs heavy plants and machinery, and a champion horserace needs a large field to use for horserace. Land for nuts and bolts can be available easily in the market, but the land for petroleum plants and championship horserace is difficult to find as it needs a suitable place to make economic activity.

Therefore, there is a larger supply of land for nuts and bolts as compared to the other two activities. As a result, a producer of nuts and bolts needs to pay lower economic rent, and the producer of petroleum and champion horserace needs to pay higher economic rent.

Answer 12

Economics Concept Introduction

In the market, economic rent refers to the income gain earned by providing own land to any other individual for use. The landowner will collect income in the form of rent, and this rental income is the only income that can be generated from the land.

Answer 13

Ch. 18 - Prob. 1TY

The relative economic rent from the following inputs.

Solution Summary: The author explains that economic rent refers to the income gain earned by providing own land to any other individual for use.

To Find: The relative economic rent from the following inputs.

Answer to Problem 1TY

Explanation of Solution

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Chapter 18 Solutions