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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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