2. Define the economic rent and commercial rent . Give example also on it. Types of Rent1. Economic Rent. The portion of theearnings of a factor of production thatcreates/yields another factor ofproductionM ماكدونالدز MSIEGE FLER1002. Commercial Rent. The payment for theuse of a factory or a building plus theland on which it stands. (Commercialrent in this case includes land rent.)

A payment that is made to a factor of production known as economic rent is greater than what is…

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2. Define the economic rent and commercial rent . Give example also on it.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5) In 2012, a consumer spends $1000 on health insurance. In 2013, she decides to buy more, spending $1300. In 2014, she increases that amount further to $1500. In 2015, she stops increasing the amount she spends on health insurance. For this consumer in 2015: A. The marginal product from health insurance is greater than the marginal product from all other goods B. The marginal product from health insurance is equal to the marginal product from all other goods C. The last dollar spent on all other goods generates more utility than the last dollar spent on health insurance D. None of the above
1&2 are separate questions. 1. The marginal revenue product of a factor shows how much an additional unit of a factor adds to - the level of production - dollar revenue. - profitability. - unit costs. 2. A profit‑maximizing firm operating in a perfectly competitive market will add new units of a factor of production until - marginal revenue product equals factor price. - marginal product equals factor price. - marginal revenue product equals marginal product. - marginal revenue product equals marginal revenue.
ECONOMICS LECTURE NOTE 5.1.3 Example Use the table below to answer the questions that follows Commodity x Quantity Commodity y Quantity Marginal utility 60 Average utility 1 30 2 50 2 27 3 35 3. 22 4 15 4. 18 5 5 15 6. 6. 12 iii. Which of the commodities would he pay higher price when 4 units are consumed? Suppose the price of X is 5 and that of Y is 4. How many of the quantity of X and Y should be consumed in order for the consumer to be in iv. equilibrium. If price of X increase to 10 whiles that of Y remains the same, explain how the equilibrium conditions will behave.
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1. The cost of production is a major determinant of consumer demand. a. True O b. False
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11 Refer to Table 10.1. The marginal revenue product of the Table 10.1 a) b) C) d) Total Labor Units (employees) 0 1 2 fifth fourth third second 345 Total Product (T-shirts per day) 0 20 50 75 95 110 worker is $150. Marginal Product of Price per Labor (per day) T-shirt -- 20 30 25 20 15 - $5 5 сл слол сл 5 5 5
11 Suppose Jill Johnson operates her pizza restaurant in a building she owns in the center of the city. Similar build- ings in the neighborhood rent for $4,000 per month. Jill is considering selling her building and renting space in the suburbs for $3,000 per month, but she decides not to make the move. She reasons: "I would like to have a restaurant in the suburbs, but I pay no rent for my restaurant now, and I don't want to see my costs rise by $3,000 per month." Evaluate Jill's reasoning.
6. John Staples accepts an offer for a job in Seattle that will start next May. His current lease runs through August. John pays $800 per month for rent plus $200 in utilities. If the utility bills are not transferable to a sublessor, what is the minimum amount John must receive per month to sublet his apartment? a. $1 b. $201 c. $801 d. $1,001
QUESTION 12 Assume that there is an increase in the value of the marginal product of land. What can we expect to happen? a. The price of land will decrease b. Land manufacturing facilities will reopen c. Unemployment. Lots and lots of unemployment d. The price of land will increase
Rent / Unit m lo O Equilibrium occupancy O Market rent O Vacancy O Shortage O Interest rate D Supply Demand Existing Stock of Space Consider the figure above. Point E represents: Units of Space