Author Question: If all of the returns to a resource are in the form of economic rent, a. the price of that resource ... (Read 152 times)

azncindy619 · **on:** Jun 30, 2018

If all of the 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 price and quantity of that resource are determined exclusively by supply
d. the price and quantity of that resource are determined exclusively by demand
e. the equilibrium price is zero

Question 2

Markets fail when externalities are present
a. because all of the costs and benefits of producing a good are reflected in the market price
b. because some of the costs and benefits of producing a good are not reflected in the market price
c. only if they are negative; positive externalities are not market failures
d. because profits are not maximized
e. if the positive externalities are less than the negative externalities