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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