Economic Rent Is Associated with __________; Economic Profit Is Associated

question 32

Multiple Choice

Economic rent is associated with __________; economic profit is associated with _______.

• A)a firm; a scarce input
• B)a scarce input; a firm
• C)a fixed input; a variable input
• D)a scarce input; a fixed input

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Definitions:

Strict Rules

Regulations or guidelines that are rigorously enforced and must be followed precisely.

Collateral Promise

A secondary promise to answer for the debt or duty of another person in case that person fails to fulfill the obligation.

Guarantor

An individual or entity that agrees to be responsible for another's debt or performance under a contract if the original party fails to comply.

Statute of Frauds

A legal doctrine that requires certain types of contracts to be in writing and signed by all parties to be enforceable.