True or false?
The correct answer is true. If an input is perfectly elastic in supply, the marginal opportunity cost of the input is the same regardless of the quantity of the input sold. The price of the input will therefore equal the opportunity cost for all units purchased. Under this circumstance, there can be no economic rent to the input. The total revenue from the sale of the input will equal the total alternative opportunity cost. If all other inputs are available under the same conditions, they too will earn no economic rent.