Economic Rent Is a Payment in Excess of

question 62

Multiple Choice

Economic rent is a payment in excess of

• A)average fixed cost.
• B)average variable cost.
• C)opportunity cost.
• D)explicit cost, but not necessarily implicit cost.
• E)none of the above

---

Definitions:

Long-run Supply Curve

A graphical representation that shows the relationship between the market price of a product and the quantity supplied by all firms in the long run when all inputs can be varied.

Competitive Market

A market structure characterized by many buyers and sellers, where no single participant has the power to significantly influence prices for homogeneous products.

Production Resource

Resources used in the creation of goods and services; these include land, labor, capital, and entrepreneurship.

Market Price

The present cost for purchasing or selling a product or service in a market setting.