Economic rent is associated with __________; economic profit is associated with _______.

Question

Quizplus · Accepted Answer

Economic rent is associated with a scarce input, which is usually a factor of production that has a limited supply and is in high demand, such as land or natural resources. Economic profit, on the other hand, is associated with a firm, which refers to the amount of profit earned by a business after all costs and expenses have been deducted from its revenues. Therefore, only option B correctly matches economic rent with a scarce input and economic profit with a firm.

Economic Rent Is Associated with __________; Economic Profit Is Associated