If All Returns to a Resource Are in the Form

question 86

Multiple Choice

If all returns to a resource are in the form of economic rent,_____

• A)the price of that resource is determined exclusively by supply.
• B)the price of that resource is determined exclusively by demand.
• C)the equilibrium quantity of that resource is zero.
• D)the equilibrium price of that resource is determined by government.
• E)the equilibrium price of that resource is zero.

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Definitions:

Fluctuations

Variations or changes in level, degree, or value that occur over time.

Responsibility Centres

Sections or departments within an organization, each overseen by a manager who is accountable for its performance and financial outcomes.

Support Department Costs

Expenses associated with departments that do not directly produce goods or services but support those who do, like maintenance or administration.

Manufacturing Costs

Expenses directly tied to the process of producing finished goods, including raw materials, labor, and overhead costs.