In Exhibit 111, economic rent at equilibrium equals

Name: In Exhibit 111, economic rent at equilibrium equals
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Question

In Exhibit 11­1, economic rent at equilibrium equals

Quizplus · Accepted Answer

At the equilibrium, economic rent equals the difference between the market price and the opportunity cost of the marginal producer. In the given exhibit, at the equilibrium quantity of 5000, the market price is $120 and the opportunity cost of the marginal producer is $40. Thus, economic rent at equilibrium equals $80 ($120 - $40). Therefore, the correct answer is option B.

In Exhibit 11­1, Economic Rent at Equilibrium Equals

In Exhibit 111, Economic Rent at Equilibrium Equals