was it economic rent or opportunity cost?
I dont remember clearly. But I think the supply curve was perfectly inelastic and thus the correct answer is economic rent.not sure though.
I disagree with you kh.asif, it was perfectly elastic so the correct answer was opportunity cost
afotex Wrote: ------------------------------------------------------- > I disagree with you kh.asif, it was perfectly > elastic so the correct answer was opportunity cost You might be correct. Cause I am shooting blanks and wild guessing. I actually forgot.
That’s not a problem Kh.asif, as long as it’s a pass on the 28th of July, hopefully we wld all get there!
Economics rent --> The amount of money an owner of a factor of production must receive in order for that owner to rent out that factor of production. Factors of production include labor, capital and land. Say for eg: - you want to work as a labourer at a construction site, then your econic rent is the effort that you put in inorder to get ready for work ********************************************************************** Opportunity cost -->The cost of an alternative that must be forgone in order to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action eg:- Say you invest in a stock and it returns a paltry 2% over the year. In placing your money in the stock, you gave up the opportunity of another investment - say, a risk-free government bond yielding 6%. In this situation, your opportunity costs are 4% (6% - 2%). Hope this help[s…!
I think that the supply curve was perfectly inelastic… If I remember correctly. Than it would be economic rent. I think I remember picking that answer…
it was definitely opportunity cost. I totally botched that one and put economic rent.
I recall “perfectly inelastic” making economic rent the correct choice.
nolife2009 Wrote: ------------------------------------------------------- > I recall “perfectly inelastic” making economic > rent the correct choice. +1. This is what I remember as well.
The question asked for perfectly elastic supply.
Yeah, I remember perfect elasticity as well. I’m pretty sure the answer was opportunity cost.
waaah… so some are saying it was perfectly elastic and some saying perfectly inelastic…so what was it???
could have been two diff versions of the test?
I recall, it was perfectly inelastic and the answer is economic rent. =="