Sapling Learning nacmlan laarning Economists use the term \"rent\" differently t

Question

Sapling Learning nacmlan laarning Economists use the term "rent" differently than people in other disciplines. Which of the following is a correct O The price paid for the temporary use of a piece of machinery O The price paid for money that will be repaid at a future date. The price paid for a natural resource which exdsts in a finite, or fixed, supply. o The price pald to entrepreneurs for their time and effort coordinating other factors of production When it is possible for firms to extract economic rent, the supply curve is typically: O nonlinear O positively sloped O perfectly inelastic O perfectly elastic O Previous Give Up & View Solution Check Answer Next

Explanation / Answer

1. Economic rent isn't rent. It is the revenue that can be earned from the land or other natural resources which has a fixed supply.

Answer- option C

2. As the resources are fixed, Therefore supply curve is perfectly inelastic.

Answer- option C

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