George earns $500,000 playing baseball for team X. His next best alternative to playing baseball is to own a fast-food restaurant, for which he would earn $100,000 a year. His next best alternative to playing baseball for team X is playing baseball for team Y, for which he would earn $400,000 a year. This example best illustrates the economic principle that
A) economic rent is never zero.
B) baseball players earn higher incomes than fast-food restaurateurs.
C) economic rent exists in all situations.
D) economic rent differs depending upon the perspective from which the factor is viewed.
Correct Answer:
Verified
Q87: Uncertainty
A)is the result of economic rent seeking.
B)is
Q88: Pure economic rent is
A)the payment to factors
Q89: If a firm is incurring a loss,
Q90: A person buys X in one market
Q91: Which of the following statements is false?
A)Competing
Q93: If X is the actual amount of
Q94: Which of the following is not a
Q95: In a very popular movie, the principal
Q96: If the nominal interest rate is 8
Q97: Jim Smith made his fortune by buying
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents