If all of the returns to a resource are in the form of economic rent,
A)the demand curve for that resource must be horizontal
B)the demand curve for that resource must be vertical
C)the supply curve of that resource must be horizontal
D)the supply curve of that resource must be vertical
E)the demand curve for that resource must be perfectly elastic

Question

Quizplus · Accepted Answer

Economic rent occurs when the supply of a resource is perfectly inelastic, meaning the supply curve is vertical. This indicates that the quantity supplied does not change regardless of the price.

If All of the Returns to a Resource Are in the Form