Question
Short-run returns to fixed supply of factor of
production are known asSolution
 The concept of quasi rent was introduced in economic theory by Marshall Marshall’s concept of quasi-rent is the extension of the Ricardian concept of rent to the short run earnings of the capital equipment (such as machinery, building etc.) which are in inelastic supply in the short run.The distinguishing characteristic of land is the fact that its supply is perfectly inelastic to changes in its price and therefore its earnings depend mainly upon the demand for it. But, in the short run, the fixed capital equipment such as machinery is likewise perfectly inelastic in supply and cost of its producÂtion is not relevant once it has been produced
The statement, "The elasticity of demand may be defined as the percentage change in quantity demanded which would result from 1 percent change in price"...
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The above curve is a
If the firms under perfect competition have different costs, abnormal profits can be earned in the long run only by
Who introduced the concept of elasticity of demand?
When the economist speaks of an increase in demand, he is usually referring to a ____________________
Pricing decision includes
A movement along a demand curve indicates that a different quantity is being demanded
This movement is due to
Movement along a demand curve as a result of change in price is known asÂ
Under price discrimination, price will be higher in the market where demand is
Shifts in demand curve as shown in the figure below represents