Asked by Samantha Cieless on May 02, 2024
Verified
The supply curve for a productive resource wherein price provides an incentive function is
A) vertical.
B) horizontal.
C) upward sloping to the right.
D) downward sloping to the right.
Incentive Function
The role of incentives or rewards in influencing individuals' or entities' behavior towards achieving certain goals or outcomes.
Supply Curve
A graphical representation that shows the relationship between the price of a good and the quantity supplied.
- Gain understanding of the economic rent concept and its impact on incentive and allocation mechanisms.
Verified Answer
MB
Manon BlaisMay 04, 2024
Final Answer :
C
Explanation :
The supply curve for a productive resource wherein price provides an incentive function is typically upward sloping to the right. This indicates that as the price of the resource increases, suppliers are willing to offer more of it for sale, reflecting the positive relationship between price and quantity supplied.
Learning Objectives
- Gain understanding of the economic rent concept and its impact on incentive and allocation mechanisms.