Economic rent can be defined as:

Question

Quizplus · Accepted Answer

Economic rent refers to the difference between the maximum amount that firms would be willing to pay for a fixed input and the minimum amount that firms actually have to pay for that input. It is not always the same as economic profit (choice A) and it is not necessarily the maximum amount that firms would be willing to pay (choice B) or the minimum amount that they actually have to pay (choice C). Economic rent is the difference between the maximum amount that firms would be willing to pay for a fixed input and the minimum amount that firms actually have to pay for that input. It is not always the same as economic profit, and it is not necessarily the maximum or minimum amount firms would be willing to pay or have to pay, but rather the difference between those amounts.

Economic Rent Can Be Defined As