An economic rent refers to

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An economic rent refers to returns that are higher than the cost of capital, implying a situation of excess profitability or market power. It is an economic concept that suggests that the return on investment exceeds what would be necessary to encourage investment or equity investors acceptable return levels. An economic rent refers to a return that is significantly higher than the cost of capital. This means that the rent is earned above the normal profit, and it is usually caused by a unique asset or a scarce resource. Economic rent can be earned by individuals or companies that have control over a natural resource or have a unique talent or skill that is in high demand.

An Economic Rent Refers to