An economic rent can be created by a common property without any admission fee

Question

Quizplus · Accepted Answer

Economic rent can indeed be created by a common property without any admission fee even if people's tastes differ. However, the distribution of this rent and the efficiency with which it is allocated will likely be sub-optimal because without a pricing mechanism (like an admission fee), it's difficult to perfectly match supply with the varying degrees of demand that arise from differing tastes.

An Economic Rent Can Be Created by a Common Property