The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2

-What are the earnings of a resource with a perfectly elastic supply curve called?

Question

The figure given below shows the demand [D and D'] and supply [S and S'] curves of shares of stock.Figure 17.2
 
-What are the earnings of a resource with a perfectly elastic supply curve called?

Quizplus · Accepted Answer

Transfer earnings refer to the minimum payment required to keep a factor of production (such as labor or capital) in its current use. In the case of a perfectly elastic supply curve, the entire payment to the resource can be considered its transfer earnings, as any amount above this would not be necessary to keep the resource in its current use.

The Figure Given Below Shows the Demand [D and D']