The supply of factor X is perfectly inelastic and it receives a price of $100. It follows that

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Quizplus · Accepted Answer

If the supply of factor X is perfectly inelastic, it means that the quantity supplied cannot be increased no matter how high the price goes. Therefore, the entire $100 received by factor X is considered pure economic rent, which is a surplus payment above and beyond what is needed to keep the factor in its current use.

The Supply of Factor X Is Perfectly Inelastic and It