Exhibit 11.3

-Refer to Exhibit 11.3,which shows the demand and supply curves of a resource.One hundred units of the resource are earning a resource price of _____
A)$10, all of which is economic rent.
B)$10, none of which is economic rent.
C)$4, all of which is economic rent.
D)$4, none of which is economic rent.
E)$10, some of which is economic rent.

Question

Exhibit 11.3
 
-Refer to Exhibit 11.3,which shows the demand and supply curves of a resource.One hundred units of the resource are earning a resource price of _____
A)$10, all of which is economic rent. 
B)$10, none of which is economic rent. 
C)$4, all of which is economic rent. 
D)$4, none of which is economic rent. 
E)$10, some of which is economic rent.

Quizplus · Accepted Answer

The resource price of $10 includes some economic rent, as economic rent is the portion of the payment to a factor of production that exceeds the owner's reservation price, which is the minimum amount they would accept.

Exhibit 11.3 -Refer to Exhibit 11.3,which Shows the Demand and Supply Curves