Suppose There Are No Barriers to Competing for Real Rents

question 40

Multiple Choice

Suppose there are no barriers to competing for real rents. It follows that if real rents exist, people will compete for them

• A)and in the process produce less of the good or service that is connected with the real rents.
• B)and in the process produce more of the good or service that is connected with the real rents.
• C)only if the real rents can be turned into artificial rents and therefore maintained over a long period of time.
• D)only if the real rents are pure economic rents and not simply economic rents.
• E)There is not enough information to answer the question.

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Definitions:

Causal Logic

The relationship between a condition or variable and a particular consequence, with one leading to the other.

Dependent Variable

In research, a variable that is expected to change as a result of manipulation or changes in the independent variable.

Independent Variable

In research, the variable that is manipulated or changed to observe its effects on the dependent variable.

Concept

A general idea or understanding that is typically abstract in nature, used as a unit of thought in theories or discussions.