Multiple Choice
Consider two resource markets in which the demand curves slope downward.In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired.In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired.Which of the following is true?
A) All of the resource earnings in market A are economic rent.
B) All of the resource earnings in both markets are economic rent.
C) All of the resource earnings in market B are economic rent.
D) None of the resource earnings in either market is an opportunity cost.
E) None of the resource earnings in either market is economic rent.
Correct Answer:
Verified
Correct Answer:
Verified
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