In the Short Run, the Supply of Land Cannot Be

question 30

Multiple Choice

In the short run, the supply of land cannot be increased even if the price of land increases substantially. In other words, the price elasticity of supply for land is equal to _____ in the short run.

• A) 0
• B) ∞
• C) 1
• D) -1

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Definitions:

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve from an investment, considering the risk involved.

Net Operating Income

A financial metric indicating the income generated from a company's core business operations, excluding deductions of taxes and interest.

Turnover

The rate at which inventory or assets are sold and replaced over a certain period of time, indicating the efficiency of sales or the usage of assets.

Investment Opportunity

A potential venture or project that promises returns or profits to the investor.