Which of the following cases BEST illustrates the generation of rents/economic profits?

Question: Which of the following cases BEST illustrates the generation of rents/economic profits?

• A firm has higher returns than an established, less risky competitor
• A firm has the greatest market share in its industry
• A firm has higher returns than an investment of similar risk
• A firm’s revenues exceed its costs

Answers: A firm’s revenues exceed its costs

Conclusion of Which of the following cases BEST illustrates the generation of rents/economic profits?

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