The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-For resources with vertical supply curves, earnings comprise of both economic rent and transfer earnings.

Question

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1
 
-For resources with vertical supply curves, earnings comprise of both economic rent and transfer earnings.

Quizplus · Accepted Answer

For resources with vertical supply curves, earnings comprise entirely of economic rent, as there are no alternative uses at different prices, meaning there are no transfer earnings.

The Figure Given Below Represents an Imperfectly Competitive Resource Market