Long-Run Economic Profit Does Not Exist for Fixed Factors Like

question 114

Multiple Choice

Long-run economic profit does not exist for fixed factors like land because

• A) bidding drives up the price of the factor until no economic profit exists.
• B) there is no market for such factors.
• C) these factors have L-shaped isoquants.
• D) these factors will earn economic profits.

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Definitions:

Reaction

A process through which substances interact to form new products, typically involving changes in molecular or ionic structure.

Pentanal

An organic compound that is a five-carbon aldehyde with the formula C5H10O, characterized by a pungent smell.

Sequence

A particular order in which related events, movements, or things follow each other.

Chromic Acid

An oxidizing agent composed of chromium trioxide or sodium dichromate in water; used for cleaning laboratory glassware and in oxidation reactions.