A firm can capture value through market power or through superior factors of production. The latter are also called:
A) housing rents.
B) monopoly rents.
C) Ricardian rents.
D) Bushian rents.

Question

Quizplus · Accepted Answer

The term "Ricardian rents" refers to the theory developed by David Ricardo, which suggests that superior factors of production can create economic rents (or profits) for the owner of the factor. This is in contrast to "monopoly rents" (choice B), which are profits that arise from market power. "Housing rents" (choice A) are not directly related to firm value capture, and "Bushian rents" (choice D) is not a commonly used term in economics.

A Firm Can Capture Value Through Market Power or Through