The payment made to an owner of a resource in excess of the opportunity cost of the resource is
A)economic rent
B)economic profit
C)wages
D)interest
E)opportunity cost

Question

Quizplus · Accepted Answer

Economic rent is the payment made to an owner of a resource (land, labor or capital) in excess of the opportunity cost of the resource. This means that the owner of the resource is earning more than they would have earned if they had used the resource for its next best alternative use.

The Payment Made to an Owner of a Resource in Excess