​The Following Graph Shows the Demand and Supply Curves of a Resource

question 6

Multiple Choice

​The following graph shows the demand and supply curves of a resource. One hundred units of the resource are earning a resource price of: Figure 11.2

• A)$10, all of which is economic rent.
• B)$10, none of which is economic rent.
• C)$4, all of which is economic rent.
• D)$4, none of which is economic rent.
• E)$10, some of which is economic rent.

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Definitions:

Economic Benefit

An increase in the value of an asset or a reduction in liabilities, contributing to an improvement in the financial position of an entity.

Present Obligation

An existing duty or responsibility that an entity is required to fulfill in the future.

PVIF

Present Value Interest Factor, a factor used to calculate the present value of a sum of money to be received in the future.

Present Value Factors

Numerical factors used in the calculation of the present value of future cash flows, considering the time value of money.