Exhibit 11.3

-Refer to Exhibit 11.3,which shows the demand and supply curves of a resource.Which unit of the resource is earning the highest economic rent?
A)the first unit
B)the tenth unit
C)the fifteenth unit
D)the hundredth unit
E)the fifth unit

Question

Exhibit 11.3
 
-Refer to Exhibit 11.3,which shows the demand and supply curves of a resource.Which unit of the resource is earning the highest economic rent?
A)the first unit 
B)the tenth unit 
C)the fifteenth unit 
D)the hundredth unit 
E)the fifth unit

Quizplus · Accepted Answer

The first unit of a resource typically earns the highest economic rent because it is the most scarce and valuable, often having the highest difference between the price and the cost of production.

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