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The marginal revenue product of land is a downward sloping relationship due to the law

The marginal revenue product of land is a downward sloping relationship due to the law
                            of diminishing returns.

22.              A factor of production with unique attributes is able to command a scarcity rent
                            determined by market demand.

23.              Aaron Rogers, football quarterback with the Green Bay Packers, signed a contract for
                            roughly $100 million. Favre would be willing to play for only $100,000. An economist
                            would argue that Favre is receiving $900,000 in wage-related rent.

24.              Rent is what entrepreneurs earn, but it is called profit to distinguish it from other forms of
                            rent.

25.              If the rate of interest is fixed, the MFC of capital is equal to the interest rate.

 

26.              Labor is the only resource that cannot earn rent.

 

27.              Profit is a guaranteed return to the entrepreneur.

 

28.              The demand curve for loanable funds slopes downward because of diminishing returns.

 

29.              If the rate of interest is fixed, a profit-maximizing firm will employ capital up to the
                            quantity where MRP = interest rate.

30.              If the rate of interest increases, the demand for loanable funds will decrease.

Dec 11 2019 View more View Less

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