Economic rent is the minimum payment necessary to induce any of the factor to be supplied.

Name: Economic rent is the minimum payment necessary to induce any of the factor to be supplied.
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Economic rent is the payment received by a factor of production in excess of what is required to keep it in its present use. The minimum payment necessary to induce any factor to be supplied is called “the reservation price”.

Economic Rent Is the Minimum Payment Necessary to Induce Any