Sources and functions of the economic profits


1) Describe what estimate the economic rent.

2) Illustrate why the economic rent refers to a surplus payment.

3) Describe the single-tax theory and some of its criticisms.

4) Describe what calculates the rent differentials.

5) Describe how the rent functions are considered as the cost to individual firm.

6) Explain how the interest rate is calculated.

7) Illustrate how the business firms form the investment decisions.

8) Write differences between the nominal and real interest rates.

9) Specify some of the factors that may result in the interest rates to differ.

10) Write differences between the economic, normal, and the accounting profits.

11) Explain why the profits are received by some of the firms and not by the others.

12) Explain three sources of the economic profits.

13) Explain the general functions of the profits.

14) Sum up the present relative shares of the national income.

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Microeconomics: Sources and functions of the economic profits
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