​A Resource That Earns Only Economic Rent

question 142

Multiple Choice

​A resource that earns only economic rent:

• A)cannot be employed in any other line of production.
• B)has an upward-sloping supply curve.
• C)has an downward-sloping supply curve.
• D)has a marginal revenue product lesser than its marginal cost.
• E)has a perfectly elastic supply curve.

---

Definitions:

Positive Output

Production of goods or services in a quantity that exceeds zero.

Short-Run Cost Function

A mathematical relation describing how production costs change with output levels over a short period, where some inputs are fixed.

Positive Amount

A numerical value greater than zero, indicating a quantity that is present or an action that increases size or quantity.

Price

The cash expenditure required, anticipated, or transmitted in exchange for a good.