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

-The 45-degree line splitting the distance between the axes in a Lorenz Curve is the:

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
 
-The 45-degree line splitting the distance between the axes in a Lorenz Curve is the:

Quizplus · Accepted Answer

The 45-degree line splitting the distance between the axes in a Lorenz Curve represents the line of income equality, which shows the distribution of income and expenditure. Therefore, option C is the correct choice. Option A and B are incorrect as they do not accurately describe the 45-degree line in the Lorenz Curve. Option D and E are also incorrect as they do not accurately represent the purpose of the Lorenz curve.

The Figure Given Below Represents an Imperfectly Competitive Resource Market