The reason economic profit is driven to zero by competition,but economic rent is not,stems from
A) an inability to produce more of the input earning the rent.
B) barriers to entry.
C) a lack of competition law for input markets.
D) a failure of the invisible hand.
E) an inefficient allocation of inputs.

Question

Quizplus · Accepted Answer

Economic rent persists because the supply of the input is fixed or limited, preventing additional production to drive down the rent, unlike economic profit which is eroded by competition.

The Reason Economic Profit Is Driven to Zero by Competition,but