If the supply of a resource is fixed,then the resource's total earnings equal _____
A)its economic rent.
B)its economic profit.
C)its marginal revenue cost.
D)its marginal revenue product.
E)its opportunity cost.

Question

Quizplus · Accepted Answer

If the supply of a resource is fixed, then the resource's total earnings equal its economic rent. Economic rent is the payment made to a resource (such as labor or land) above what is needed to keep it in its current use. It is equal to the resource's marginal revenue product minus its opportunity cost, and in a fixed supply situation, it is equal to the resource's total earnings.

If the Supply of a Resource Is Fixed,then the Resource's