Author Question: A resource that earns only economic rent a. cannot be employed in any other line of production, so ... (Read 42 times)

ETearle · **on:** Jun 30, 2018

A resource that earns only economic rent
a. cannot be employed in any other line of production, so its opportunity cost is zero
b. is rental payment for a resource that has already been paid for
c. is impossible because all resources have an opportunity cost associated with their use
d. is not fixed in quantity
e. has a perfectly elastic supply curve

Question 2

A metal-stamping factory moves next to a day care center. Noise from the factory makes it impossible for the kids to nap. What would be the optimal solution to this problem?
a. The factory should move.
b. The day care center should move.
c. The factory should install sound insulation.
d. The day care center should install sound insulation.
e. We cannot determine the solution without more information.