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.

---

Definitions:

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Independent Variable

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

Experimental Method

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.

Independent Variable

The variable in an experiment that is manipulated to observe its effect on a dependent variable.