If variations in the price of an input do not lead to changes in the amounts of the input available to the economy,the payment received by the input is referred to as

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This payment received by the input, despite variations in its price, is referred to as rent. This is because rent is the payment made for the use of a factor of production that is fixed in supply, such as land or a specific type of skilled labor. Therefore, changes in the price of that factor do not affect the amount available for use, and the payment for its use remains the same, in the form of rent.

If Variations in the Price of an Input Do Not