Author Question: In the long run, a firm's producer surplus is equal to the A) economic rent it enjoys from its ... (Read 6 times)

lunatika · **on:** Jul 1, 2018

In the long run, a firm's producer surplus is equal to the

A) economic rent it enjoys from its scarce inputs.
B) revenue it earns in the long run.
C) positive economic profit it earns in the long run.
D) difference between total revenue and total variable costs.
E) difference between total revenue and total fixed costs.

Question 2

Which of the following production functions exhibits constant returns to scale?

A) q = KL
B) q = KL0.5
C) q = K + L
D) q = log(KL)