If a factor of production has no production cost and has a fixed supply, then payments to that factor constitute what economists call

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Economic rent refers to payments made for the use of a factor of production that has a fixed supply and no production cost. This concept is often associated with land or natural resources, where the supply is fixed and the owner receives payment (rent) not based on production costs but rather the value or utility derived from its use.

If a Factor of Production Has No Production Cost and Has