Long-run economic rent or profit do not exist for fixed factors like land because,
A. bidding drives up the price of the factor until no economic rent exists.
B. there is no market for such factors.
C. these factors have L-shaped isoquants.
D. these factors will earn economic profits.
Answer:A
Long-run economic rent or profit do not exist for fixed factors like land because,
A. bidding drives up the price of the factor until no economic rent exists. B. there is no market for such factors. C. these factors have L-shaped isoquants. D. these factors will earn economic profits.