Pure economic rent can exist only when a factor has a demand curve that is perfectly inelastic.

Name: Pure economic rent can exist only when a factor has a demand curve that is perfectly inelastic.
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Quizplus · Accepted Answer

Pure economic rent can exist due to the unique characteristics of a factor of production (like land) that make its supply perfectly inelastic, not the demand curve. It's the supply side, not the demand side, that primarily determines the existence of pure economic rent.

Pure Economic Rent Can Exist Only When a Factor Has