Economic rents are earned whenever
A)demand for a factor is perfectly inelastic.
B)a factor receives a reward that exceeds its cost.
C)a factor earns a reward that is greater than the amount needed to keep the factor in its present employment.
D)a factor's supply curve intersects its demand curve at a point where demand is inelastic.

Question

Quizplus · Accepted Answer

Economic rent is the payment to a factor of production that exceeds the amount necessary to keep it in its current use.

Economic Rents Are Earned Whenever