(a) Economic rent and transfer earning

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 18, Problem 1E

To determine

(a)

Economic rent and transfer earning

Expert Solution

Explanation of Solution

The given demand supply curve is perfectly inelastic; hence, when the supply is totally inelastic, the transfer earning would be zero. Hence, there would be only economics rent and no transfer earnings.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 1

Graph showing the Economic rent in the perfectly inelastic supply demand curve.

The area ABCD represents the All Economic rent; there are no transfer earnings since the same amount would be supplied at a price of 0is supplied at market price.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

To determine

(b)

Impact on economic rent and transfer earning when demand increases.

Economic rent and transfer earning

Expert Solution

Explanation of Solution

If the demand increased, there would be a shift in the demand curve to the right resulting the price increased from $ A to $ E.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 2

The price in increase therefore results in the increase of economic rent.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

not use ai please

What are the key factors that influence the decline of traditional retail businesses in the digital economy? 2. How does consumer behavior impact the success or failure of legacy retail brands? 3. What role does technological innovation play in sustaining long-term competitiveness for retailers? 4. How can traditional retailers effectively adapt their business models to meet evolving market demands?

Problem 1.1 Cyber security is a very costly dimension of doing business for many retailers and their customers who use credit and debit cards. A recent data breach of U.S.-based Home Depot involved some 56 million cardholders. Just to investigate and cover the immediate direct costs of this identity theft amounted to an estimated $62,000,000, of which $27,000,000 was recovered by insurance company payments. This does not include indirect costs, such as, lost future business, costs to banks, and cost to replace cards. If a cyber security vendor had proposed 8 years before the breach that a $10,000,000 investment in a malware detection system could guard the company's computer and payment systems from such a breach, would it have kept up with the rate of inflation estimated at 4% per year?

Answer 2

Question

Chapter 18, Problem 1E

To determine

(a)

Economic rent and transfer earning

Expert Solution

Explanation of Solution

The given demand supply curve is perfectly inelastic; hence, when the supply is totally inelastic, the transfer earning would be zero. Hence, there would be only economics rent and no transfer earnings.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 1

Graph showing the Economic rent in the perfectly inelastic supply demand curve.

The area ABCD represents the All Economic rent; there are no transfer earnings since the same amount would be supplied at a price of 0is supplied at market price.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

To determine

(b)

Impact on economic rent and transfer earning when demand increases.

Economic rent and transfer earning

Expert Solution

Explanation of Solution

If the demand increased, there would be a shift in the demand curve to the right resulting the price increased from $ A to $ E.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 2

The price in increase therefore results in the increase of economic rent.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 18, Problem 1E

To determine

(a)

Economic rent and transfer earning

Expert Solution

Explanation of Solution

The given demand supply curve is perfectly inelastic; hence, when the supply is totally inelastic, the transfer earning would be zero. Hence, there would be only economics rent and no transfer earnings.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 1

Graph showing the Economic rent in the perfectly inelastic supply demand curve.

The area ABCD represents the All Economic rent; there are no transfer earnings since the same amount would be supplied at a price of 0is supplied at market price.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

To determine

(b)

Impact on economic rent and transfer earning when demand increases.

Economic rent and transfer earning

Expert Solution

Explanation of Solution

If the demand increased, there would be a shift in the demand curve to the right resulting the price increased from $ A to $ E.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 2

The price in increase therefore results in the increase of economic rent.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 18, Problem 1E

To determine

(a)

Economic rent and transfer earning

Expert Solution

Explanation of Solution

The given demand supply curve is perfectly inelastic; hence, when the supply is totally inelastic, the transfer earning would be zero. Hence, there would be only economics rent and no transfer earnings.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 1

Graph showing the Economic rent in the perfectly inelastic supply demand curve.

The area ABCD represents the All Economic rent; there are no transfer earnings since the same amount would be supplied at a price of 0is supplied at market price.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

To determine

(b)

Impact on economic rent and transfer earning when demand increases.

Economic rent and transfer earning

Expert Solution

Explanation of Solution

If the demand increased, there would be a shift in the demand curve to the right resulting the price increased from $ A to $ E.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 2

The price in increase therefore results in the increase of economic rent.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 1E

To determine

(a)

Economic rent and transfer earning

Expert Solution

Explanation of Solution

The given demand supply curve is perfectly inelastic; hence, when the supply is totally inelastic, the transfer earning would be zero. Hence, there would be only economics rent and no transfer earnings.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 1

Graph showing the Economic rent in the perfectly inelastic supply demand curve.

The area ABCD represents the All Economic rent; there are no transfer earnings since the same amount would be supplied at a price of 0is supplied at market price.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

To determine

(b)

Impact on economic rent and transfer earning when demand increases.

Economic rent and transfer earning

Expert Solution

Explanation of Solution

If the demand increased, there would be a shift in the demand curve to the right resulting the price increased from $ A to $ E.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 2

The price in increase therefore results in the increase of economic rent.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

Answer 6

Chapter 18, Problem 1E

To determine

(a)

Economic rent and transfer earning

Expert Solution

Explanation of Solution

The given demand supply curve is perfectly inelastic; hence, when the supply is totally inelastic, the transfer earning would be zero. Hence, there would be only economics rent and no transfer earnings.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 1

Graph showing the Economic rent in the perfectly inelastic supply demand curve.

The area ABCD represents the All Economic rent; there are no transfer earnings since the same amount would be supplied at a price of 0is supplied at market price.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

Answer 7

Chapter 18, Problem 1E

To determine

(a)

Economic rent and transfer earning

Answer 8

Expert Solution

Explanation of Solution

The given demand supply curve is perfectly inelastic; hence, when the supply is totally inelastic, the transfer earning would be zero. Hence, there would be only economics rent and no transfer earnings.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 1

Graph showing the Economic rent in the perfectly inelastic supply demand curve.

The area ABCD represents the All Economic rent; there are no transfer earnings since the same amount would be supplied at a price of 0is supplied at market price.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

Answer 13

To determine

(b)

Impact on economic rent and transfer earning when demand increases.

Economic rent and transfer earning

Expert Solution

Explanation of Solution

If the demand increased, there would be a shift in the demand curve to the right resulting the price increased from $ A to $ E.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 2

The price in increase therefore results in the increase of economic rent.

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

Answer 14

To determine

(b)

Impact on economic rent and transfer earning when demand increases.

Economic rent and transfer earning

Answer 15

Expert Solution

Explanation of Solution

If the demand increased, there would be a shift in the demand curve to the right resulting the price increased from $ A to $ E.

EBK MICROECONOMICS, Chapter 18, Problem 1E , additional homework tip 2

The price in increase therefore results in the increase of economic rent.

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Economics Concept Introduction

Introduction:

Economic rent is the amount paid to the factor of production which is excess of what is economically or socially necessary.

Transfer earning is the minimum amount which is to be paid so that labour do not move to other occupation.

Answer 20

Ch. 18 - Prob. 1E Ch. 18 - Prob. 2E Ch. 18 - Prob. 3E Ch. 18 - Prob. 4E Ch. 18 - Prob. 5E Ch. 18 - Prob. 6E Ch. 18 - Prob. 7E Ch. 18 - Prob. 8E Ch. 18 - Prob. 9E Ch. 18 - Prob. 10E

(a) Economic rent and transfer earning

(a) Economic rent and transfer earning

Explanation of Solution

(b) Impact on economic rent and transfer earning when demand increases. Economic rent and transfer earning

Explanation of Solution

Want to see more full solutions like this?

Chapter 18 Solutions

(a)

Economic rent and transfer earning

(b)

Impact on economic rent and transfer earning when demand increases.

Economic rent and transfer earning