A resource that earns only economic rent
A)cannot be employed in any other line of production, so its opportunity cost is zero
B)is rental payment for a resource that has already been paid for
C)is impossible because all resources have an opportunity cost associated with their use
D)is not fixed in quantity
E)has a perfectly elastic supply curve

Question

Quizplus · Accepted Answer

Economic rent is earned by a resource that has no opportunity cost, meaning it cannot be employed in any other line of production. This is why the rent is a surplus payment and not a cost of production. Therefore, option A is the correct answer as it states that such a resource has zero opportunity cost.

A Resource That Earns Only Economic Rent