Refer to the table above. What is the marginal rent cost if the firm decides to choose factory Far over factory Very Far?

If a 5 percent increase in price results in a 3 percent increase in the quantity supplied, the elasticity of supply is

A) 0.30. B) 0.60. C) 1.20. D) 1.66.

If the government sets a specific tax and an ad valorem tax so that they raise the same amount of tax revenue, why does the ad valorem tax reduce output less than the specific tax?

What will be an ideal response?