Pure economic rent exists only when

Question

Quizplus · Accepted Answer

Pure economic rent is defined as the income earned by a factor of production (such as land or labor) that is in excess of the minimum amount necessary to keep it in its current use. In other words, it is the income received for a factor of production beyond what is required to keep it in its current use. This means that there are no opportunity costs associated with the factor of production, which is only possible when opportunity costs are zero.

Pure Economic Rent Exists Only When