Author Question: In the long run, a perfectly competitive firm is expected to generate either an economic profit or ... (Read 72 times)

dmcintosh · **on:** Jun 30, 2018

In the long run, a perfectly competitive firm is expected to generate either an economic profit or an economic loss.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following is true of earnings from land?
a. An increase in economic rent leads to an increase in the supply of land.
b. A decrease in transfer earnings from land leads to an increase in its demand.
c. An increase in economic rent does not lead to an increase in the supply of land.
d. A decrease in transfer earnings from land leads to a decrease in its supply.
e. An increase in economic rent raises the elasticity of supply of land.