Why do market forces drive economic profit but not economic rent toward zero?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of Economics

ISBN: 978-0073511405

5th edition

Authors: Robert Frank, Ben Bernanke

See More Books

Question Posted: Dec 12, 2015 04:29 AM

See More Questions

Recall that Blades, the U.S. manufacturer of roller blades, generates most of its revenue and incurs most of its expenses in the United States. However, the company has recently begun exporting...
1. According to Illustration Capsule 3.1, which companies comprise the strategic group of firms to which Anheuser-Bush belong? Why is the circle containing Anheuser-Bush and Inbev name larger than...
Teldar Paper has 33 different vice presidents, each earning over $200,000 a year. I have spent the last two months analyzing what all these guys do, and I still cant figure it out. One thing I do...
2. National Defense (40 points). There are 11 countries in Europe who get utility from general consumption c, and from European national defense G. The utility of a generic country i is u(ci, G) =...
Citibank Visa gives its cardholders "bonus dollars," which may be spent in partial payment for gifts purchased with the Visa card. The company wants to estimate the average amount of bonus dollars...
Management Decision Systems (MDS) is a consulting company that specializes in the development of decision support systems. MDS has a four-person team working on a current project with a small company...
The velocity potential for a cylinder (Fig. P6.63) rotating in a uniform stream of fluid is \[ \phi=U r\left(1+\frac{a^{2}}{r^{2}} ight) \cos \theta+\frac{\Gamma}{2 \pi} \theta \] where $\Gamma$ is...
The Gonzalez Company uses a job order costing system at its plant in Green Bay, Wisconsin. The plant has a machining department and a finishing department. The company uses two cost driver rates for...
You attach a meter stick to an oak tree, such that the top of the meter stick is 2.27 meters above the ground. Later, an acorn falls from somewhere higher up in the tree. If the acorn takes 0.236...
Reconsider the data in Exercises 10.5 and 10.6. Suppose the process measurements are individual data values, not subgroup averages. In Exercise 10.5 (a) Use observations 1-20 in Exercise 10.5 to...
Why do most cities in the United States now have more radios but fewer radio repair shops than they did in 1960?
Why do economists emphasize efficiency as an important goal of public policy?
What competitive forces have challenged the movie industry? What problems have these forces created? What changes have these problems caused the movie and television studios to make? Describe the...
What is the difference between explicit and implicit assumptions?
.. The mother gave birth to the child (Cheryl) on August 29, 1993. In November, 1993, the [Department of Revenue (department)] filed a complaint in the Probate and Family Court against the father on...
State the principle of impulse and momentum.
Assume that a lesbian couple has chosen to use a known donor, and they enter into an agreement in which the donor agrees not to seek any parental rights or to see the child, and the women agree not...
What is the distinction between a particle and a rigid body?
Sketch the region of integration and evaluate the following integrals, using the method of your choice. 1 4 + x + y R /2 0 3/2} dA; R = {(r, 0): 0 r 2,
What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used?
A small nation of ten people idolizes the TV show American Idol. All they produce and consume are karaoke machines and CDs, in the following amounts: a. Using a method similar to the consumer price...
Which of the problems in the construction of the CPI might be illustrated by each of the following situations? Explain. a. The invention of the iPod b. The introduction of air bags in cars c....
The New York Times cost $0.15 in 1970 and $2.00 in 2009. The average wage in manufacturing was $3.23 per hour in 1970 and $20.42 in 2009. a. By what percentage did the price of a newspaper rise? b....
Write a thesis on income equality in India, write something about Income Equality in India, and compare it with Income Equality in Canada.
A 4 MVA, 6.6 kV 3-phase star connected, synchronous generator has 16-poles. Its direct and quadrature axis synchronous reactances are 10 and 4 respectively. Generator is supplying full load at 0.8 pf...
What is a critical consideration in selecting a Qualified Intermediary for a 1031 Exchange? The speed of transaction processing by the Intermediary. The safety and management of funds held by the...

Why do market forces drive economic profit but not economic rent toward zero?

Question:

Step by Step Answer:

Market forces such as entry to and exit from an industry ...View the full answer

Principles of Economics

Students also viewed these Economics questions