When Does the Entire Earning of a Resource Comprise of Economic

question 47

Multiple Choice

When does the entire earning of a resource comprise of economic rent?

• A)When the supply curve of the resource is relatively elastic
• B)When the supply curve of the resource is horizontal
• C)When the supply curve of the resource is vertical
• D)When the supply curve of the resource is relatively inelastic
• E)When the supply curve of the resource is a ray through the origin

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Definitions:

Net Present Value

A financial metric used to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows over a period of time.

Internal Rate of Return

The discount rate at which the net present value of an investment's cash flows equals zero, used as a metric to evaluate the profitability of potential investments.

Interest Rates

The cost of borrowing money or the return earned from lending money, typically expressed as a percentage of the principal.

Yearly Save

Yearly save refers to the amount of money or cost savings that an organization or individual aims to achieve within a one-year period.