Which of the Following Is NOT a Result of Rent

question 1

Multiple Choice

Which of the following is NOT a result of rent controls?

• A) increased turnover as tenants move more frequently from one rental unit to another
• B) reduced incentives for landlords to keep rental units in good repair
• C) reduced incentives to build new rental housing
• D) increased discrimination against people deemed undesirable on the part of landlords

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Definitions:

Incremental Costs

Incremental costs are the additional costs that are incurred from producing an additional unit of product or making a decision.

Incremental Revenue

The increase in income resulting from a specific business decision, distinct from the company's base revenue level.

Overhead

Overhead refers to the ongoing administrative and general expenses of a business that are not directly tied to a specific product or service production but are necessary for the business's operations.

Direct Labor

The labor costs directly tied to the production of goods or services, which can be directly attributed to specific units of production.