Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 70, Problem 3MCQ
To determine
What a very steep supply curve for land indicates
Expert Solution & Answer
Answer to Problem 3MCQ
From the available options, the correct option is “a”, rental rate.
Explanation of Solution
The market wage rate is the marginal cost of labor for any company and it does not come under the explicit cost. And, the profit received from using that land and the marginal product of land would not come under explicit cost as they are not monetary expenses.
As the explicit cost represents
Economics Concept Introduction
Introduction: Explicit cost indicates the cash outflows that involve monetary transactions such as payments for wages, rent, advertisements, etc.
Chapter 70 Solutions
Krugman's Economics For The Ap® Course
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