What is the difference between Monopoly rents and Ricardian rents?
A)Ricardian rents refer to technological advantages whereas Monopoly rents are profits arising from the firm being a monopoly.
B)Ricardian rents refer to profits arising from market power, whereas Monopoly rents are profits arising from superior resources
C)Monopoly rents refer to profits arising from market power, whereas Ricardian rents are profits arising from superior resources
D)The difference is only semantic

Question

Quizplus · Accepted Answer

Monopoly rents refer to the profits that arise from the market power of a firm, while Ricardian rents refer to the profits that arise from the superior resources of a firm in a specific location. Both types of rents are related to a firm's ability to earn higher profits than would be possible in a perfectly competitive market, but they arise from different sources. Therefore, choice C is the correct option.

What Is the Difference Between Monopoly Rents and Ricardian Rents