Is it not that the supply elasticity of "difficult to supply or difficult to regenerate" is small? Is it an exception to the non renewable energy sources such as oil?
1, the opportunity cost of any element is the same, it is only one, but it is closely linked with the supply curve, because the shape of the supply curve determines the supply elasticity of the factor.2, conomic rent means economic rent, it is such a part of income: if all income from some of the factors in the minus part of income and would not affect the supply, we will be part of the income minus called economic rent. The part of the revenue is not required to gain elements, it represents more than the highest income of the elements can get to in other places of factor income, so the economic rent is equal to the sum of the elements of all elements of income minus the opportunity cost. It is clear that the economic rent of non renewable resources is zero, because any reduction in prices will reduce the supply of factor income.3, the supply of low skilled workers is lack of flexibility, because of the low skilled workers to supply a large amount, and they even for a living wage decrease is acceptable, low skilled workers in short supply are not sensitive to price changes. The economic rents for the supply of inelastic factors are generally large, because even if the price decreases, the total factor income will not decrease.
The size of the elasticity is closely related to the length of time, the longer the time, the more manufacturers have the ability to adjust production, product elasticity is also greater. The supply of non renewable resources in the short term is inelastic, but if it is discussed here in the long run, it is understandable that the supply of non renewable resources is perfectly elastic.
If the non renewable resources supply is perfectly elastic, can be understood: because resources are non renewable, so it is very precious, it is often in short supply, so manufacturers will be in a very strong position, it is not to compromise with the decline in prices, as long as the price is a little bit down, it will refused to supply. So its supply is perfectly elastic.
This should be another kind of understanding.We usually think of a resource supply is inelastic, is often considered from the manufacturer's point of view, because the manufacturers can not adjust the production factors in the short term, but discontinued if the loss will be greater, so its supply price unresponsive.
