If a resource has perfectly elastic supply curve then its income is termed as:
A)economic rent.
B)rental rate of capital.
C)rental income.
D)annuity.
E)transfer earnings.

Question

Quizplus · Accepted Answer

A perfectly elastic supply curve indicates that the resource can be supplied at a constant price, meaning all income is transfer earnings, as the resource can be supplied in any quantity without affecting its price.

If a Resource Has Perfectly Elastic Supply Curve Then Its