1.Which of the following is an economic rent?

A)The extra profit that a successful innovator makes on bringing a new product to the market before its competitors.

B)The extra profit that a firm makes when it doubles in size and there are no changes to costs or the price for each unit of its output.

C)The amount you pay your landlord for the use of an apartment.

D)The amount you pay to hire a car for a weekend.

2. Innovation rents are:

i) The increased land rent that landlords can charge when agricultural productivity increases. ii) The profits made by being among the first to adopt a cost-reducing technology. iii) Subsidies paid to inventors and other innovators by the government to overcome the externality associated with innovation.

A)only i

B)only ii

C)i and iii

D)ii and iii