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Scarcity rent is the cost of "using up" a finite resource because benefits of the extracted resource are unavailable to future generations. Efficiency is achieved when the resource price--the benefit society is willing to pay for the resource today--is equal to the sum of marginal extraction cost and scarcity rent.
The economic rent obtained is an abnormal rent, often referred to as resource rent, since it generates from a situation where the resource owner has open access to the resource for free. In other words, the resource rent is the resource royalty or resource's net price (price received from selling the resource minus costs. In this case costs are ...
Price systems have been around as long as there has been economic exchanges. The price system has transformed into the system of global capitalism that is present in the early 21st century. [2] The Soviet Union and other Communist states with a centralized planned economy maintained controlled price systems. Whether the ruble or the dollar is ...
In the moral economy of the economics tradition broadly, economic rent is opposed to producer surplus, or normal profit, both of which are theorized to involve productive human action. Economic rent is also independent of opportunity cost, unlike economic profit, where opportunity cost is an essential
Also in 2016, Quizlet launched "Quizlet Live", a real-time online matching game where teams compete to answer all 12 questions correctly without an incorrect answer along the way. [15] In 2017, Quizlet created a premium offering called "Quizlet Go" (later renamed "Quizlet Plus"), with additional features available for paid subscribers.
Prices and quantities are allowed to adjust according to economic conditions in order to reach equilibrium and allocate resources. However, in many countries around the world governments seek to intervene in the free market in order to achieve certain social or political agendas. [ 39 ]
The Ramsey problem, or Ramsey pricing, or Ramsey–Boiteux pricing, is a second-best policy problem concerning what prices a public monopoly should charge for the various products it sells in order to maximize social welfare (the sum of producer and consumer surplus) while earning enough revenue to cover its fixed costs.
The extent to which resource crowding out occurs depends on the economic situation. If the economy is at capacity or full employment, then the government suddenly increasing its budget deficit (e.g., via stimulus programs) could create competition with the private sector for scarce resources, resulting in a redistribution of production across ...