Question 1:

The economic rent from an input used in producing a particular commodity is

1. the total revenue from the sale of the product minus its opportunity cost.

2. the total revenue from the sale of that input minus its opportunity cost.

3. the area over the supply curve of the input but under price paid for the product.

4. the area over the supply curve of the product but under the price paid for the product.

Choose the option that yields the correct answer.