If All the Return to a Resource Is Economic Rent

question 359

Multiple Choice

If all the return to a resource is economic rent, we know that

• A) the price of the resource is below its opportunity cost.
• B) the price of the resource equals its opportunity cost.
• C) the price of the resource is above its opportunity cost.
• D) the resource has no opportunity cost.

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Definitions:

Incentive Motivation

Motivation driven by the desire to gain external rewards or avoid negative outcomes.

Principal to Principal

A relationship or interaction that occurs directly between the main parties involved, without intermediaries.

Agent to Agent

Communication or interaction between autonomous entities in a network, typically in the context of software or business negotiations.

Principal to Staff

The relationship and authority dynamic between the primary leaders or executives (principals) and the employees (staff) within an organization.