Question
Which of the following statements are correct? 1. If Technology A brings a higher economic rent than Technology B, a firm should choose Technology B.
Which of the following statements are correct?
1. If Technology A brings a higher economic rent than Technology B, a firm should choose Technology B.
2. An economic rent is the amount you pay to your landlord for the use of an apartment.
3. In an economic model, ceteris paribus means an analysis holding other things constant.
4. Many economic models use relative prices because we often are interested in ratios of things rather than their absolute level.
5. An increase in economic rent decreases an individual's benefit.
A) 3,4
B) 1, 5
C) 1, 2, 5
D) 2
E) 3, 4, 5
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