Exhibit 113 In Exhibit 113, economic rent in equilibrium equals

Question

Exhibit 11­3  In Exhibit 11­3, economic rent in equilibrium equals

Quizplus · Accepted Answer

Economic rent in equilibrium is the difference between the price of a factor of production (in this case, land) and the minimum amount necessary to keep that factor in its current use. In this exhibit, economic rent is the difference between the market price of $1,000 and the opportunity cost of $0 for the landowner (since there is no cost to maintain the land at its current use). Therefore, economic rent in equilibrium equals $1,000.

Exhibit 11­3 in Exhibit 11­3, Economic Rent in Equilibrium

Exhibit 113 in Exhibit 113, Economic Rent in Equilibrium