Pure economic rent can exist only when the factor under consideration

Name: Pure economic rent can exist only when the factor under consideration
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Pure economic rent can only exist when the supply curve of the factor is perfectly inelastic. This means that the factor cannot be easily increased or decreased in supply, which causes the price to rise above the cost of production, resulting in economic rent. Land is commonly associated with pure economic rent due to its finite supply.

Pure Economic Rent Can Exist Only When the Factor Under