Modern theory of rent does not confine itself to the reward of only land as a factor of production as was the case in the classical Ricardian theory of rent. Rent in modern sense can arise in respect of any other factor of production, i.e., labour, capital and entrepreneurship.

Correct Option: B

Modern theory of rent does not confine itself to the reward of only land as a factor of production as was the case in the classical Ricardian theory of rent. Rent in modern sense can arise in respect of any other factor of production, i.e., labour, capital and entrepreneurship.

Any straight line supply curve passing through the origin has an elasticity of supply equal to 1. The different types of price elasticity of supply are listed below:

Correct Option: D

Any straight line supply curve passing through the origin has an elasticity of supply equal to 1. The different types of price elasticity of supply are listed below:

Unit elastic refers to an elasticity alternative in which any percentage change in price cause an equal percentage change in quantity. In other words, any change in price, whether big or small, triggers exactly the same percentage change in quantity. However, the unit price elastic demand curve does not touch either price axis or quantity axis.

Correct Option: B

Unit elastic refers to an elasticity alternative in which any percentage change in price cause an equal percentage change in quantity. In other words, any change in price, whether big or small, triggers exactly the same percentage change in quantity. However, the unit price elastic demand curve does not touch either price axis or quantity axis.

There are 4 factors of production; land, labor, capital and entrepreneurship. The demand for the factors of production is a derived demand. That means these factors of production are demanded because there is a demand for the end product they produce.

Correct Option: B

There are 4 factors of production; land, labor, capital and entrepreneurship. The demand for the factors of production is a derived demand. That means these factors of production are demanded because there is a demand for the end product they produce.

The price of a good is also known as the Average Revenue of the firm. Average Revenue (AR) or Price and Marginal Revenue (MR) are identical. When the former is constant, the latter is also constant. Moreover, the Average Revenue curve of a firm is the same as the individual demand curve. Hence, the competitive demand curve is a horizontal straight line parallel to the OX axis.

Correct Option: C

The price of a good is also known as the Average Revenue of the firm. Average Revenue (AR) or Price and Marginal Revenue (MR) are identical. When the former is constant, the latter is also constant. Moreover, the Average Revenue curve of a firm is the same as the individual demand curve. Hence, the competitive demand curve is a horizontal straight line parallel to the OX axis.