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

-An increase in economic rent is accompanied by an increase in the quantity supplied of a resource.

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
 
-An increase in economic rent is accompanied by an increase in the quantity supplied of a resource.

Quizplus · Accepted Answer

Economic rent refers to the payment to a factor of production (like land) in excess of what is needed to keep it in its current use. It is determined by demand and supply for that factor and does not necessarily increase the quantity supplied, as the supply of some resources (like land) is fixed and does not change with price increases.

The Figure Given Below Represents an Imperfectly Competitive Resource Market